Board resolutions are legally binding documents that document the votes and decision taken by your company’s directors at a board meeting. Important situations, such as appointing new directors, hiring or firing employees, or selling company shares all require an official board resolution as evidence that your board has been able to vote on these important issues.
The first step is to determine the kind of decision being taken. Review your company’s policy to determine if it calls for an ordinary or a 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 instance, you may need a quorum of at least three directors in order to pass a resolution that requires binding decisions.
Start with a title that is appropriate for the document. This will help you find the resolution document quickly within your records system. Include a unique resolution number for your document-keeping system. This will allow you to refer to the resolution in future.
After the resolution has been drafted, it is important to make sure that the document is properly signed by all required directors. This is why it’s a great idea for you Will AI and Automation Replace Accountants and Bookkeepers in the Future? to use board portal software that helps make the process of writing resolutions and electronically signing them easy and easy.