Board resolutions are an official way to record and document the decisions made during a board meeting. They can help ensure that the decisions are in line with local, state, and federal laws and regulations. They also help reduce the legal risks that may result from these choices.
Whether the decision in question is something as minor as a change to employee working hours or as significant as closing down the business the board must keep a record of the decision. The board must also be able to explain the rationale behind the decision so that anyone who doesn’t know the decision can understand the reasons behind it and whether or not it was the right decision.
As such, composing an official resolution for a board can be an intimidating task. By learning the purpose of these documents, and employing the right tools for creating them and make it easier.
A Board Resolution: What it Is and How to write one
When the board makes significant decisions that impact shareholders or the company, they need to record these decisions in an official manner. These decisions are known as resolutions of the board. They assist in setting clear guidelines regarding ethics and governance. They also serve www.fishboardroom.com to show the board’s commitment to transparency in the corporate world.
Board resolutions may be passed in a meeting of the board or, in more recent times, they can be passed via written resolutions. When writing a resolution it should begin with an “WHEREAS” which is a statement of the subjects that were discussed during the board meeting. Then, the resolutions are added. Once the document is complete and signed by all directors who were present at the meeting.
