Board resolutions are documents that are the record of crucial decisions taken by board members. They also authorize individuals or organizations to take action on the matter that was taken. As such, they form an important part of a board’s authority, and could have legal implications. It can be difficult for new directors to create effective resolutions, especially those who aren’t experienced with the process.
It is advisable to use a template to familiarize yourself with the language and format of a resolution. This template can be found on your board portal. This will make drafting resolutions much more simple for all members and will ensure that the resolution follows the format that is required.
A well-crafted board resolution starts with “Whereas” statements that provide the basic facts and rationale behind a decision. It ends with “resolved” clauses that clearly identify the specific procedure to be taken. The resolution should then include the names of all board members who voted either in favor or against, and a space for the chairperson (or authorized signatory) to sign their name.
Also, it’s important to note that board resolutions drafting effective templates a resolution is only able to be adopted in the presence of all directors in the same room at the meeting. It can be difficult to coordinate when your directors are located in different cities or even countries. This is why a board resolution template comes in handy. It allows the board to draft and adopt resolutions swiftly and accurately without having to wait for everyone to be in the same room for an official board meeting.