How to Write a Board of Directors Resolution

Board resolutions are legally binding documents which record the outcomes of votes and decisions taken by your company’s board of directors at a meeting of the board. Board resolutions are required for crucial situations, such as the appointment of directors, firing employees or selling company shares. They serve as evidence that the board voted on the important issues.

To draft a board directors resolution, your first step is to identify the type of decision that you are making. Review the company’s policies to determine whether it requires an ordinary or special resolution. Your company’s governing documents may contain information on the number of directors who are required to vote favor of the decision. For example, you might need a quorum of at least three directors in order to pass resolutions that require binding decisions.

Begin by choosing a title https://thedailyboardroom.com/how-board-management-software-pricing-structure-works/ that is appropriate for the document. This will help you identify the resolution document quickly within your records system. Also, make sure to include the resolution number that is unique to your document-keeping system. This will allow you to refer back to the resolution in future.

After the resolution has been created, it is vital to make sure that the document is properly signed by all directors that are required. This is why it’s a good option to use board portal software, which helps make the process of writing resolutions and e-signing them streamlined and easy.