Corporate resolutions document a corporation’s board of directors’ actions and decisions. The purpose is to hold the board accountable and show regulators the board acts responsibly.
A common example authorizes an executive to access funds, sign checks, acquire loans. All directors must sign the resolution recorded in meeting minutes.
The format of most resolutions includes:
- Business name
- Date, time, place
- Details like purpose and planned actions
- Directors’ signatures
Resolutions address matters like:
- Appointing persons to handle finances
- Approving new board members
A resolution ensures board decisions don’t conflict with owners. It differs from Articles of Incorporation, registering the business.
Ultimately, a resolution states: who, what, where, when and how. It shows the firm complies with requirements by documenting major decisions.