Board resolutions are the documents that formally record critical decisions made by board members and authorize individuals or organizations to take the procedure. They are an essential part of the board’s authority and can have legal consequences. However, drafting effective resolutions is a challenge for new directors who aren’t familiar with the process.
The best way to familiarize yourself with the structure and language of resolutions is to use templates that are pre-made and stored in your portal for boards. This will make it simpler for members to draft resolutions, and also ensure it adheres to the required format.
A good board resolution starts with “Whereas” statements that explain the basic facts and rationale behind a decision. It ends with “resolved” clauses that clearly define the exact actions to be taken. The resolution should include an inventory of the board members who participated in favor or against it and a space for the chairperson (or the authorized signatory) to sign their name.
Also, it’s important to keep in mind that a resolution can only be implemented in the presence of all directors in person at a board meeting. It can be a challenge to coordinate if your directors are in different cities or even countries. This is why a board resolution template is useful. It lets the board make resolutions and approve them quickly and accurately without having to wait for everyone to be in the same room for a formal board meeting.
board resolutions drafting effective templates