Board resolutions are written documents that contain the most important decisions taken by board members. They also authorize individuals or organizations to implement the decision decided. They are a key part of the authority of a board and can have legal implications. However, drafting effective resolutions can be daunting for new directors who are unfamiliar with the process.
The best way to get acquainted with the format and language of a resolution is to use templates that are pre-made and stored in your board portal. This will make the process of drafting resolutions much easier for all members, and also ensure that the document adheres to the proper format.
A good board resolution starts with “Whereas” statements that outline the basic facts and rationale behind a decision, and ends with “resolved” clauses which clearly state the specific method to be taken. The resolution should include an inventory of all board members who voted for or against it. There should be an area where the chairperson, or an authorized signatory, can sign their name.
Also, it’s important to remember that a resolution can only be approved if all directors are present in the same room at the board meeting. It can be difficult to coordinate if your directors are 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 quickly and efficiently without waiting for everyone to be available in the same room for a formal board meeting.