How to Write a Board of Directors Resolution

Board resolutions are legally binding documents that document the results of votes and the decisions made by the company’s board of directors at a board meeting. Significant situations, such as the appointment of new directors, firing or hiring employees, and selling shares of company all call for the board to adopt a resolution as a form of compliance evidence that your board has been able to vote on these important issues.

First, you must determine the type of decision being made. Then, review your company’s policy to determine whether it is required to write an ordinary or special resolution. The company’s legal documents could include a list of directors who must vote in favor of the decision. It is possible that you need at least three directors to approve a Why Your Company Needs a Due Diligence Data Room for Efficiency binding resolution.

Begin by choosing the title that is appropriate for the document. This will allow you to quickly identify the document in your records system. Include an individual resolution number in 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 ensure that the resolution is signed by all required directors. This is why it’s a great idea to make use of board portal software that allows you to write resolutions and electronically signing them easy and easy.