Board resolutions are legally-binding documents that document the votes and decision taken by your company's directors during a board meeting. Board resolutions are mandatory in major situations such as appointing directors, removing employees, or selling shares of the company. They serve as evidence that your board of directors voted on the most important issues.

To draft a board directors resolution, your first step is to determine the kind of decision you're making. Then, you must review the company's policies to determine if it requires an ordinary or special resolution. The documents that govern your company may specify how many directors are required to vote in favor of the decision. For example, you might require a quorum that is at three directors to approve https://thedailyboardroom.com/how-board-management-software-pricing-structure-works/ an agreement that is legally binding decisions.

Whatever type of resolution you need to draft start by choosing a suitable title for your document. This will let you quickly identify the document within your records system. Also, make sure you include a resolution number that's unique to your document-keeping system. This will let you easily refer to the resolution number in the future.

It is important that the directors of your company sign your resolution after it is written. This is why it's a good idea to utilize board portal software, which makes the process of writing resolutions as well as e-signing them simple and simple.