Board resolutions are written documents that document the crucial decisions made by board members. They also empower individuals or organizations to implement the decision that was taken. They constitute a significant element of the power of a board and may have legal implications. However, the process of writing effective resolutions can be difficult for directors who are unfamiliar with the process.
The best way to become familiar with the structure and language of a resolution is to use a pre-made template that’s stored in your portal for boards. This will make it simpler for members to create resolutions and make sure it adheres to the required formatting.
A well-crafted board resolution begins with “Whereas,” which explains the facts and reasoning behind a decision. It concludes with “resolved,” which identifies the specific action to be taken. The resolution should include an inventory of all board members who voted in favor or against it and a space to allow the chairperson (or authorized signatory) to sign their name.
It is also crucial to remember that a resolution is only able to be adopted when all directors are present in the same room at the board meeting. This can be a challenge if you have directors who are located in different cities or countries which is the reason the use of a template for your board resolution is extremely beneficial. It allows the board to draft and adopt resolutions swiftly and accurately, without having to wait for everyone to be present in the same room for a formal board meeting.