What Should Be Included In A Resolution Of The Board Meeting?

Once you learn what components make up the board’s resolution, it’s elementary to write it.Be sure to check that the board participants and the president of the board of directors have signed the resolution and dated it. This is the same legit document as the minutes of the meeting.

What Does a Resolution of the Board Meeting Imply?

In the process of document management in companies, a resolution is a document that is created by an authorized person or official and reflects his/her decision. Simply put, this is a text that contains the decision of the meeting of the directors of the organization, affixed to the meeting documents.The characteristic properties of the resolution are:

  • involvement of influential individuals or organizations;
  • directed study of the situation and decision-making on this matter;
  • written form;
  • legal force;
  • assessment of the current situation;
  • a clear description of the content of the document.

The resolution performs a wide range of functions. The document approval, which is performed by an authorized person or body, expresses a specific decision on a specific issue.Its main functions are:

  • the ability to replace administrative documents (the resolution is equated to administrative documents in terms of its legal force);
  • a way to once again confirm the awareness of a person or group of people in resolving an issue (for example, to show that the board of directors is directly involved in solving problems);
  • allows the performers to follow the orders of the management: according to the prepared “scheme” and on time.

As a rule, the resolution of the board of directors is aimed at presenting the information on which the stakeholders’ vote was taken. It also dates to understand on which decision was made. Using quality board software allows making an effective resolution. Feel free to read the board portals comparison to figure out which platform is the best for your company.

Resolution Structure

The most general structure of almost any resolution implies the presence of the following elements (parts):

  • the indication of the person (responsible executor) to whom the resolution is addressed;
  • the characterization of the essence of the resolution;
  • the indication of the expected performance dates;
  • the manager’s signature;
  • the resolution date.

Sometimes, the manager can give the necessary explanations (for example, what the final decision might look like or how the development of the document should be organized).The texts of the resolutions consist of one sentence. If the order is specific, the text part may include the following wording:

  • confirm receipt;
  • additional talk;
  • prepare a response;
  • report on completion;
  • inform after the expiration of the deadline for the decision, etc.

If the indication contained in the test part of the resolution is general, such wordings are used as: for information; to leadership; to execution. If required, the order may be supplemented with a deadline for execution.

Signature of the Chairman of the Board of Directors and Date of the Resolution

The signature of the head and the date of writing the resolution are an integral part of it. It determines the beginning of the action. The absence of these details indicates an incorrect design of the resolution. To save the leader’s time, the secretary or assistant can prepare a draft resolution in advance and submit it to the leader, who signs the resolution and sets the date.

Targeting of the Resolution

A mandatory requirement for a resolution is targeting. To improve performance discipline, it’s highly recommended to establish a person responsible for the decision. It is not necessary to indicate the position of the performer in the addressee. The addressee contains only the performer’s surname and initials, and the initials are indicated after the surname.