Resolution of Board of Directors

·         Make sure the resolution is formatted correctly by include the date and resolution number at the top. It doesn’t matter what number you give it if this is the board’s first resolution. You may start with a number like 0001 and assign successive numbers to each subsequent resolution.
·         Create a title for your resolution that reflects the problem you’re trying to record. Resolution Allocating the 2018 Gala Proceeds to the Advertising Budget, for Example.
·         Write each new paragraph in the body of the resolution with formal language, starting with the word whilst to signal a change in subject. The duty of the board must be stated in the opening sentence. In other words, “whereas the Board is charged with the duty of allocating monies for certain purposes.”
·         Keep listing each vital statement of the settlement, prefacing each new paragraph with whilst.
·         The board’s final resolution, or its actual action, should be stated in the resolution’s final sentence. It may read, “Now, therefore, be it resolved to allocate the proceeds from the 2016 Gala Fundraiser to the Marketing Fund.”
·         The person of the board members voting on the resolution should be listed at the bottom of the resolution, along with checkboxes next to their names. When a majority of the board members vote “yes,” the resolution is passed.
·         The resolution should also provide a space for the president of the board to sign and date it.

A corporate resolution is a formal, legally binding document drafted by a company’s board of directors. In a corporation, the shareholders are represented by the board of directors. The board’s role is to oversee the company’s operations and make sure that its policies are being followed and that the right people are in charge. A corporate resolution is a crucial piece of paper because it lays forth the parameters within which the board of directors can make decisions. Although corporate resolutions can take many different forms, they are most often recorded in the minutes of a board meeting. The corporate resolution is the official record of the board of directors’ decisions and acts. The purpose of a corporate resolution is to create the corporation as a distinct legal entity from its owners. By preventing the board and the corporate executives from having any conflicts of interest with the owners, a corporate resolution helps the corporation maintain its independence from its owners. When it comes to putting up a business, the big decisions must be made by the board of directors and the management must go by the policies they establish. Every publicly traded firm must have a board of directors. A corporation relies on it to set strategic directions, back up leadership responsibilities, and guarantee the availability of sufficient, well-managed resources. Corporate resolutions are documented in the minutes of board meetings and can include important decisions. Corporate resolutions are a useful tool for holding the board of directors to account for compliance with applicable rules and regulations and for ensuring that the directors are fulfilling their fiduciary responsibilities to the company’s shareholders. Documentation of board and management team decisions is provided by corporate resolutions.