Board resolutions are legally binding documents which record the outcomes of votes and decisions made by the board of directors of your company at a meeting of the board. Board resolutions are required in important situations like appointing directors, removing employees, or selling shares of the company. They serve as evidence that your board has voted on the important issues.
In order to write a board of directors resolution, the first step is to determine the type of decision that you are making. Examine the company’s policy to determine if it requires an ordinary or special resolution. The company’s legal documents could also state how many directors must vote in favor of the decision. You may need at minimum three directors in order to pass a binding resolution.
Whatever type of resolution you’ll need to draft begin by creating a suitable title for Why Your Company Needs a Due Diligence Data Room for Efficiency your document. This will let you quickly identify the document within your records system. Include a unique resolution number for your document-keeping system. This will let you easily reference the resolution in the future.
After your resolution has been drafted, it is important to make sure that the document is properly signed by the required directors. It is a good idea to utilize software for boards for this purpose, since it helps make the process of writing and electronically signing resolutions streamlined and convenient.
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