Board resolutions are legally binding documents that document the outcomes Will AI and Automation Replace Accountants and Bookkeepers in the Future? of votes and the decisions made by the company’s board of directors during a meeting of the board. Board resolutions are necessary in major events like appointing directors, firing employees, or selling shares of the company. They are a proof that your board has voted on the most important issues.
To draft a board of directors resolution, the first step is to determine the nature of the decision you’re making. Go through your company’s policies to determine if it calls for an ordinary or a special resolution. In the governing document of your company, it may be stated how many directors must vote for the decision. You may need at minimum three directors to pass a binding resolution.
Whatever resolution you’ll need begin by creating a suitable title for your document. This will help you find the resolution document quickly within your records system. Also, make sure you include the resolution number that is unique to your document-keeping system. This will make it easy to refer back to the resolution in future.
It is essential that the directors of your company sign your resolution after it’s been drafted. It is a good idea to use a board portal software for this purpose, since it helps make the process of writing and e-signing resolutions simple and easy.
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