How to Get Started Drafting Effective Board Resolutions

Board resolutions are the documents that are the record of crucial decisions taken by board members. They also allow individuals or organizations to implement the decision that was taken. As such, they form an important aspect of a board’s authority, and could have legal implications. However, the process of writing effective resolutions Web Site can be daunting for new directors who are unfamiliar with the procedure.

It is advisable to use a template in order to familiarize yourself with the structure and language of a resolution. This template is available on your board portal. This will make it easier for members to draft resolutions and ensure that the document follows the required formatting.

A good board resolution begins with “Whereas” statements that detail the most fundamental facts and reasons behind a decision. It ends with “resolved” clauses that clearly identify the specific method to be followed. The resolution should include a list of the board members who participated in favor or against it and a space for the chairperson (or the authorized signatory) to sign their name.

Also, it’s important to remember that a resolution is only able to be approved in the presence of all directors in the same room at the board meeting. This could be a challenge when you have directors who reside in different countries or cities which is the reason the use of a template for your board resolution is so helpful. It lets the board create and approve resolutions quickly and efficiently without having to wait for everyone to be available in the same room for a formal board meeting.

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