Board of Directors Resolutions are formal documents that provide a detailed outline of the official decisions taken by a board of directors. They are, therefore, binding on the organization. As part of a company’s verification process, they could be requested by its shareholders or by government officials.
Board resolutions are usually adopted during board meetings. They need to be approved by a majority vote of the board. They may be ad-hoc papers that the board is able to vote on and approves in the absence of the formal meeting. There are many kinds of resolutions. They include motions to abstain from notification, minutes and adjournment.
In a meeting the board will debate the proposed resolution in order to determine if any additional details or information is required. A member of the board will propose to adopt the resolution, and a seconder will be the one to vote. Once the motion has been seconded the board will then vote on it according to a procedure described in the organization’s bylaws. The votes are recorded by the corporate secretary and included in the board’s minutes. The final step is for the appropriate officers to accept the resolution.
While the process of writing and recording a resolution for the board can be a challenge for novice board members, having a complete understanding of how to create a resolution makes the process much easier. By adhering to a common format and providing clear concise information boards can quickly and efficiently pass resolutions that are in line with the organization’s requirements. Make sure that the resolutions you pass are legal and efficient by keeping them in an online, secure repository using Board Management Software.
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