How to Get Started Drafting Effective Board Resolutions

Posted by Security Vault

Board resolutions are the documents that document the crucial decisions made by board members. They also empower individuals or organizations to implement the decision taken. They constitute a significant part of the authority of a board and have legal implications. However, writing effective resolutions can be daunting for directors who aren’t familiar with the process.

It is best to use a template in order to familiarize yourself with the language and format of a resolution. This template can be found on the portal for your board. This will make it simpler for members to draft resolutions, and also ensure the resolution follows the prescribed formatting.

A well-crafted board resolution starts with “Whereas” statements that provide the basic facts and rationale of a decision. It concludes with “resolved” clauses that clearly outline the specific method to be followed. The resolution should include the names of the board members who voted either in favor or against, and a space for the chairperson (or authorized signatory) to sign their name.

It is also crucial to remember that a resolution can only be adopted if all directors are present in the same room at a board meeting. This is a challenge for directors who reside in different cities or countries which is why using a template for board resolutions is so beneficial. It allows the board members to draft and adopt resolutions with speed and accuracy without waiting for everyone to be present in a formal meeting.