Board resolutions are documents which document the crucial decisions made by board members. They also give individuals or organizations to take action on the matter taken. They form a crucial part of the authority of a board and may have legal implications. It can be difficult for new directors to draft effective resolutions, particularly in the event that they aren’t acquainted Web Site with the process.
The most effective way to get familiar with the structure and language of a resolution is to use a pre-made template that’s stored in your portal for boards. This will make it easier for members to create resolutions and make sure the document follows the required formatting.
A well-crafted board resolution starts with “Whereas” statements that detail the basic facts and rationale for a decision, and concludes with “resolved” clauses that clearly outline the specific method to be followed. The resolution should contain the names of all board members who voted either for or against it. It should also contain a space where the chairperson, or the authorized signatory, can sign their name.
It is also important to note that a resolution is only able to be acted on only if all directors present in person at a board meeting. This could be a challenge for directors who reside in different countries or cities, and is also why the use of a template for your board resolution is so helpful. It lets the board make resolutions and approve them quickly and efficiently, without having to wait for everyone to be present in the same room for an official board meeting.
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