What is a Sample Corporate Resolution?
A comprehensive guide on what constitutes a sample corporate resolution, its importance, and how it is typically structured.
Save 90% on your legal bills
Purpose of a Corporate Resolution
A corporate resolution is primarily used to document significant decisions made by the board of directors or shareholders. These decisions can range from approving major business transactions to setting company policies. The resolution provides transparency and accountability within the organization by clearly stating what has been decided and why.
Why is a Corporate Resolution Important?
A corporate resolution is crucial for any business entity because it ensures that all stakeholders are aware of the company's goals, policies, and legal obligations. It helps in maintaining transparency and accountability within the organization.
Elements of a Corporate Resolution
1. Introduction: This section introduces the purpose of the meeting and lists all attendees who voted on the resolution.
2. Motion: Clearly states what action or decision is being proposed.
3. Seconding: Indicates who seconded the motion.
4. Discussion: Provides details about any discussions held during the meeting related to the motion.
5. Vote: Records how each attendee voted on the motion.
6. Result: States whether the motion passed or failed and by what margin if applicable.
7. Action Items: Outlines any actions required as a result of passing or failing the motion.
8. Signatures: Includes signatures from all attendees who voted on the resolution.
How to Draft a Sample Corporate Resolution?
To draft a sample corporate resolution, you need to follow these steps:
- Introduction: Start with an introduction that includes the purpose of the meeting and lists all attendees who voted on the resolution.
- Motion: Clearly state what action or decision is being proposed.
- Seconding: Indicate who seconded the motion.
- Discussion: Provide details about any discussions held during the meeting related to the motion.
- Vote: Record how each attendee voted on the motion.
- Result: State whether the motion passed or failed and by what margin if applicable.
- Action Items: Outline any actions required as a result of passing or failing the motion.
- Signatures: Include signatures from all attendees who voted on the resolution.
Example Corporate Resolution Template
RESOLVED, that [Company Name] hereby approves [specific action or decision].
Be it further RESOLVED, that [Company Name] shall take all necessary steps to implement this decision.
This resolution was adopted by unanimous vote at a meeting held on [date] at [location].
Signed:
[Signature of Chairperson/CEO]
[Signature of Secretary]
[Signature of Other Attendees]
Conclusion
In conclusion, understanding how to create and use sample corporate resolutions is vital for maintaining transparency and accountability within any business organization. By following these guidelines and using templates provided here or elsewhere online or through legal counsel if necessary; you'll be well-equipped to handle various corporate matters effectively.
