Ultimate Board Resolution Guide

In business operations, corporate records play an important role, including those showing the results of meetings. In order not to miss all the important points for the organization of work, it is necessary to properly draw up the decision of the board of directors according to the established template. We suggest learning how to leave such a template from this article.

Why does the company need a template for the resolution of the board?

Every day in the everyday life of the company – regardless of the specifics and scale of its activities – a huge number of documents appear. Of these, a significant part is of applied importance and is used to organize the work of the structural parts of the company. The decision of the board of directors belongs to such organizational documents.

This document has due legal force and is a resolution part of the minutes of the meetings. All decisions that are recorded in this document are to be implemented. Quite often each point of the resolution not only represents the actions to be performed, but also indicates the specific executors who are responsible for the result of their implementation.

If we take into account the fact that a resolution is a binding legal document, then we should assume that it must have a clear and approved structure. Therefore, all experts in the field advise making a corporate template of such a resolution. This will make it possible to:

  • To put all the points of the resolution of the board of directors in a single document;
  • Monitor their implementation;
  • Plan the company’s work in the future according to the drafted resolution.

The main objective of a resolution of the board of directors is to record the responsibility of the management structures for implementing the above paragraphs. That is why a resolution of the board of directors should have legal force and a clear structure.

How should a board resolution be properly drafted?

To make the final decision of the board of directors look like a document with appropriate legal force, it should have some mandatory details. It is recommended that the corporate template include:

  1. Necessary requisites that will help identify the document. This should be the date, the number of the decision, the name of the company and the document.
  2. Develop a clear structure. In order not to lose any point from the decision, it is recommended to structure the information according to a certain attribute. In doing so, it is better to write each decision from a new paragraph.
  3. Use formal language. To be sure that all points are understood by the executors, it is better to use vocabulary that is understandable to all, but without unnecessary familiarity.
  4. Highlight the most important points at the end. Of course, the entire text of the decision should have a clear structure. But the most important thing – what the board of directors actually adopted on the matter under discussion – should be placed at the bottom of the document, underlined with an appropriate title.

At the end, you should indicate the names of the board members and their decision on the item. If a vote was taken, it is advisable to indicate opposite each name how they voted. There should also be space for the signature of the board member chairman, his secretary, and other important persons who participated in the vote.

You can trust the legal department to create a template for your company. So it will comply with generally accepted and internal standards of document management.