✍🏽 Board membership changes
✍🏽 Issuing new shares
✍🏽 Acquiring new assets/companies
✍🏽 Buying back shares
✍🏽 Taking out new corporate loans
✍🏽 Expanding to a new stateOn the other hand, day-to-day activities, like hiring new employees or taking on new clients, don’t need to be recorded in a corporate resolution. Important to note: S corporations and C corporations are required to write corporate resolutions. If you’re a sole proprietor like me, though, corporate resolutions are not necessary.
Format your resolution by putting the date, time, location, and resolution number at the top of the document.
For your first resolution, you can use a number like ‘0001’ to account for future resolutions.
You can also list the board members and other attendees that are present, but this is optional.
Your title should be clear and concise and should clearly indicate the purpose of the document.
For example, “Corporate Resolution by the Board of Directors at Company A to Acquire Company B.”
You should also be sure to include the detailed legal identification of the company.
For example, “Company A was incorporated in the State of California on Jan. 1, 2015."
A corporate resolution should, of course, indicate all of the issues resolved during the meeting.
For example, “TO DISCUSS: That the Company will acquire Company B.” After which, you might write, “RESOLVED: The Company agrees to purchase Company B for $X.”
Every detail of the decision made during the meeting should be a separate paragraph and resolution.
You can also choose to indicate the details regarding each decision and the vote count for each decision.
Every corporate resolution should finish with a legal declaration of the accuracy of the resolution.
This declaration should be dated and signed by all necessary parties, which might include the chairperson of the board, treasurer, corporate secretary, vice-chairperson, or others.That’s all there is to it! Essentially, a corporate resolution is a document stating the decisions made by your company’s board of directors, and when these decisions were made. By following these five steps, you can quickly write a corporate resolution.
Corporate resolutions are often meant for internal use, but in some cases, corporate resolutions are needed by third-parties for certain business transactions.
Corporate resolutions written for external use should be simplified by as much as possible. In these cases, the third-party only needs to know that your company’s board is in agreement regarding the transaction. They don’t need all the details.
Corporate resolutions are essential documents. While they are simple documents, they are also legally binding, so it’s important to be careful when writing one.
The good news is that there are many corporate resolution templates available on most legal service websites. These templates are often perfect for standard resolutions and can save you a lot of time and effort.
Again, a corporate resolution is a legally binding document. As such, it’s essential to be clear and concise.
You can include details that you think may be important when looking back at the resolution, but do your best to avoid fluff. Your resolution mustn’t leave room for confusion.
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