How to Write a Board of Directors Resolution

Board resolutions are legally binding documents that document the votes and decisions made by your company’s directors during a board meeting. Board resolutions are mandatory in crucial situations, such Will AI and Automation Replace Accountants and Bookkeepers in the Future? as the appointment of directors, firing employees or selling company shares. They serve as proof that your board of directors voted on the crucial issues.

To draft a board of directors resolution, your first step is to identify the kind of decision you’re making. Then, you must review the company’s policies to determine whether it requires an ordinary or special resolution. The company’s legal documents could specify how many directors are required to vote in favor of the decision. You might need at least three directors in order to pass a legally binding resolution.

Start with the title that is appropriate for the document. This will help you identify the resolution document quickly in your records system. Also, be sure to include the resolution number unique to your document-keeping system. This will let you easily refer to the resolution in the future.

It is important that the directors of your company sign your resolution after it has been drafted. It is a good idea to utilize software for boards for this purpose, as it makes the process of writing and e-signing resolutions streamlined and convenient.