Overview of Resolutions
A resolution is a written motion adopted by a deliberative body. It documents binding decisions made on behalf of a corporation. Resolutions approve actions like mergers, real estate purchases, opening bank accounts, and stock issuance.
Differences Between Resolutions and Laws
Resolutions differ from laws. Laws intend to permanently direct matters applying to people or issues in general. Moreover, laws are enforceable whereas resolutions state opinions or recommendations.
Functions of Resolutions
- Resolutions record the board’s intentions and actions. They include lists of decisions made and steps taken to execute them.
- Corporations document important decisions in resolutions so they can prove boards and shareholders approved those actions.
- Resolutions are commonly used in corporations and houses of legislature.
Comparison with Laws
- In law, a resolution is a written motion adopted by a deliberative body.
- The substance of the resolution can be anything that can normally be proposed as a motion.
Legal Binding of Board Resolutions
A resolution records binding decisions made by a corporation’s board. Resolutions approve actions like mergers and stock issuance. They provide accountability and reduce liability.