Board resolutions are a formal method of recording and documenting decisions made during a board meeting. They make sure that the decisions made are in compliance with federal, state and local laws and regulations. They also assist in reducing any legal risks that might arise from these www.fishboardroom.com decisions.
The board must keep a written record of all decisions, no matter how small or significant they may be. The board should also be able show the reasoning behind the decision, in order that anyone outside of the organization can understand why the decision was made and determine if it was a right choice.
Writing a board resolution can be a daunting task. If you know the purpose behind these documents, and utilizing the right tools for creating them to make it a lot easier.
What is a Board Resolution? And how do you create one?
The board must record important decisions affecting shareholders or the company in a formal manner. These are referred to as resolutions by the board and aid to establish clear policies regarding issues like governance, ethics, and risk management. These resolutions are also used as a means to demonstrate the board’s commitment to transparency of the company.
Board resolutions may be passed at a board meeting or in more recent times, they can be approved through written resolutions. When writing a resolution it should begin with a “WHEREAS” that outlines the topics discussed at the board meeting. Then, the resolutions are added. The document must be signed by every director who attended the meeting.
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