A board resolution may be intimidating for some due to the extensive use of formal language. A board resolution also known as corporate resolution is a formal document that makes a statement about important issues, decisions and discussions in the meetings that are so important that the board wants to have a record of it.
During the life of a organization many general meetings and board meetings are held when important decisions need to be made by members and directors. Certain rules and procedures are followed to ensure the execution of these formal meetings complies with organization law.
Any resolutions (decisions) that are taken during the course of a general or board meeting must be recorded accurately. If you are the only director and shareholder of your organization, you may be still required to hold ‘meetings’ in some situations. It may appear bizarre but it is simply a matter of formality to satisfy corporate compliance regulations. A resolution is an important document as it is a record/ evidence if in case compliance comes in to question. The length of the resolution isn’t important.
Chanakya prepares board resolutions for client NGOs that caters to following needs:
- To document voting in of a new member of the board
- To record a decision made at a board meeting
- To document a decision made by the shareholders of a corporation
- When a organization wants to hire new employees
- When a organization wishes to sell shares in the corporation
- When a Non-Profit Organization wants to delegate funds to a certain project
- When a Government entity wants to honor someone
- Where Should Boards Store Resolutions?
Chanakya writes board resolutions following the formats internationally accepted like putting the date and resolution number at the top. We give a title to the resolution that speaks about the issue that documented. For example, we might give title “Resolution to provide funds to the Fundraising Campaign” to a resolution mentioning the same. We use formal language in the body of the resolution. We list the names of the board members voting on the resolution and spaces adjacent to their names where they can indicate a “yes” or “no” vote. We include a space for the board president to sign and date the resolution.