Board resolutions are legally-binding documents that record the votes and decisions taken by your company’s directors Why Your Company Needs a Due Diligence Data Room for Efficiency during the board meeting. Board resolutions are mandatory in major situations such as appointing directors, firing employees, or selling shares of the company. They serve as evidence that your board of directors voted on the most important issues.
First, you must decide the kind of decision being taken. Review your company’s policy to determine if it requires an ordinary or a special resolution. The documents that govern your company may also state how many directors are required to vote favor of the decision. It is possible that you need at least three directors in order to approve a binding resolution.
Regardless of the type of resolution you need to draft, start with an appropriate title for your document. This will enable you to quickly identify the document within your records system. Include an unique resolution number in your document-keeping system. This will allow you to easily refer to the resolution in the future.
After your resolution has been written, it is crucial to make sure that the resolution is approved by the directors who are required to sign it. This is why it’s a great idea to make use of board portal software that allows you to write resolutions and e-signing them quick and convenient.