A business or board resolution template is used to formalize the decisions that a listed or private company board of directors make during meetings. For any company to comply with the various regulations that govern virtually any sector of business worldwide, they need to keep careful records of all the processes and decisions that are authorized by the company’s board of directors.
For any legal entity, regardless of jurisdiction, any formal decision made by the corporate officers must be documented by using a business resolution template. These resolutions give legal authority to the corporate officers to make transfers of funds, assign tasks, and bind officers to corporate decisions made. Although resolutions mostly get used in medium to large corporations even smaller organizations often need to use a resolution to enact important decisions.
Business resolutions give officers of the organization the legal right to sign on behalf of the company for new business dealings as well as many other daily operations. Corporate resolutions can also be passed according to a vote made by the shareholders of a company if they are not part of the board of directors, meaning that the shareholders could vote to instruct the directors to enact certain operational changes that they deem crucial for the survival of the company. It must be noted that although shareholders can vote to make changes such as these the company as a legal entity must still pass a resolution to make the decision legally binding to the officers of the company.
A corporate resolution can be used for any binding decisions from an impact on the ownership of the business, financial decisions for the corporation, to document disagreements between those in control of the business, any formal declaration of the corporation must be “legalized” with a resolution. It is important to note that daily operational decisions do not need to be ratified with resolutions so that the day-to-day running is not interrupted by formal processes.
Corporations come in many variations from sole proprietorships to large multinational corporations and in all cases resolutions form a vital part of the running of these organizations. Although they are most used in the case of larger companies, resolutions are used to keep in line with the local jurisdiction and legislation when it comes to effecting important decisions for the company. Based on the fact that a company is seen as a legal entity, resolutions make up the legal documentation of what the governing body agrees on for the future of the company.
Initially, when a company is started, there would be a host of resolutions passed so that the company as a whole has a guideline for the daily business operations. These documents must have the correct format and signatories to become legally binding under the law. As corporations exist separately from the shareholders regardless of whether they are involved in the daily running of the business, these resolutions give those in the management positions the authority to perform their daily duties. The type of decisions that require a resolution to be binding are:
Resolutions also are used to effect major company decisions like
These decisions could have a major impact on the company and whether positive or negative there must be a paper trail that could be reviewed by the legal entities like tax auditors, banks, courts, and the creditors or debtors.
As the guiding rule for corporations, business resolutions make sure that the company stays in line with the law and that decisions made for the good of the company are documented for future reference. If your company does not use corporate resolutions to keep track of the major decisions in the company, you could end up having to sacrifice your personal assets and potentially incurring criminal judgment in the event of contravention of local or international laws.
When you start a corporation, you use articles of incorporation to define the direction and structure of the company. When you need to deviate from this structure you need to legalize the decisions with corporate resolutions, which will give the power of attorney to the relevant officers to fulfill the obligations on behalf of the company. All corporations have a set of by-laws that make up the guiding principles by which the company is managed, and legal and properly formatted resolutions make up the paper track record of the board decisions for legal and judicial inquiry or later review to shed light on who was involved with any specific decision.
To have your resolution legally binding, it needs to be formatted correctly and this could incur a cost if you do not use the correct templates. That is where Business-in-a-Box makes your life simpler and more streamlined. Our corporate resolution template database covers every aspect of your business and has been created by a legal professional and industry specialist to conform to all the legal requirements regardless of jurisdiction, if not with minimal editing.
Our database of business resolution templates covers every major decision that you could vote on in the corporate structure, with more than 70 templates available, you can document all major decisions for your corporations.
With so many different types of resolution that could be passed by your board of directors having a legal advisor on the payroll could prove to be a costly exercise if your company is not geared for it. In the case of most corporations, the streamlining of operational cost includes keeping the salary bill as low as possible. Legal advisors are often a costly addition, hence the Business-in-a-Box solution to Corporate Resolutions.
Our resolutions are created by experts to ensure that your company stays in line with the regulation and can continue to operate and earn a profit. Within our selection of resolutions you will find the following administration documentation:
Managing a business of any size is a crucial job specifically considering that your decisions impact the operational success of the business. That is why company resolutions are so important to the effective running of any corporation. Sign up to obtain access to over 2000 templates that will help you confirm and document these major decisions for your shareholders and business partners.