Board resolutions are documents which record in writing the most important decisions taken by board members. They also authorize people or organizations to follow the established procedure. As such, they are an essential element of a board’s power and may have legal implications. However, writing effective resolutions can be daunting for directors who are unfamiliar with the procedure.
The most effective way to get familiar with the structure and language of resolutions is to work with an already-designed template that’s saved in your board portal. This will make drafting resolutions a lot easier for all members and ensure that the resolution follows the format that is required.
A Web Site good board resolution begins with “Whereas,” which explains the reasoning and facts behind the decision. It ends with “resolved,” which identifies the specific action that needs to be taken. The resolution should include a list with all the board members who voted in favor or against it. There should also be an area where the chairperson or the designated signatory can sign their name.
It’s also important to know that only if all directors are present at a board of director meeting can a resolution be implemented. It can be difficult to coordinate when your directors are in different cities or even countries. This is why a template for board resolutions comes in handy. It allows the board to draft and adopt resolutions quickly and accurately without waiting for everyone to be present in the same room for an official board meeting.