Board resolutions are documents that document the crucial decisions made by board members. They also give individuals or organizations to take action on the matter decided. They form a crucial element of the authority of a board and can have legal implications. It can be challenging for new directors to create effective resolutions, particularly in the event that they aren’t acquainted with the process.
The best way to familiarize yourself with the structure and language of a resolution is to use an already-designed template that’s saved in your board portal. This will make the process of drafting resolutions much simpler for all members and ensure that the document adheres to the prescribed format.
A good resolution for the board begins with “Whereas” statements that explain the essential facts and reasoning of a decision. It concludes with “resolved” clauses that clearly identify the specific method to be followed. The resolution should include the names of the board members who participated in favor or against it as well as a space for the chairperson (or authorized signatory) to sign their name.
In the end, it is important to remember that a resolution can only be approved if all directors are present in the same room at the meeting. It can be difficult to coordinate if your directors are located in different cities or even countries. This is why a template for a board resolution is a great resource. It allows the board to make resolutions and approve them quickly and efficiently, without having to wait for everyone to be available in the same room for an official board meeting.