Board resolutions are legally binding documents that record the outcomes of votes and decisions taken by the company’s board of directors during an annual board meeting. Board resolutions are necessary in major events like the appointment of directors, firing employees, or selling shares of the company. They are a proof that your board voted on the important issues.
The first step is to Will AI and Automation Replace Accountants and Bookkeepers in the Future? determine the kind of decision being taken. After that, you should review your company policy to see whether it needs an ordinary or special resolution. The documents that govern your company may also state how many directors are required to vote favor of the decision. It is possible that you need at least three directors in order to pass a legally binding resolution.
No matter what kind of resolution you’ll need to draft start by choosing a suitable title for your document. This will let you quickly identify the document within your records system. Also, be sure to include a resolution number that is unique to your document-keeping system. This will let you easily refer to the resolution number in the future.
Once your resolution is created, it is vital to make sure that the resolution is approved by the directors who are required to sign it. It is a good idea to use board portal software for this purpose, since it helps make the process of writing and electronically signing resolutions easy and efficient.