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Company Resolution Template

COMPANY RESOLUTION

A corporate resolution from the meeting of directors. Enter your information into the spaces provided to generate and download your personalized Corporate resolution.

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Full name with the suffix
In which country was the company incorporated

To maintain legal standing and adhere to regulations, it’s crucial for businesses to generate a company resolution for legal compliance.

COMPANY RESOLUTION

A company’s board of directors uses a corporate resolution to put decisions in writing. It shows that the business had the authority to make a specific choice or action.
It creates a record of major decisions by the shareholders or the board of directors.
Every business needs to make important decisions, and a free corporate resolution template can help you make those decisions correctly. Legal Templates can help you create a corporate resolution that fits your company.

 

The Importance of Corporate Resolutions

Company (or Corporate) resolutions play a critical role in ensuring legal compliance and maintaining transparency within an organization. They provide clear evidence that decisions were made with proper authority, help mitigate legal risks, and offer a documented trail for accountability. A well-drafted resolution supports good corporate governance practices, reassures investors, and ensures that all significant decisions are made in accordance with the company’s established procedures and applicable laws.

 

Frequently Asked Questions

 

1. What is a corporate resolution?

A corporate resolution is a formal document created by a corporation’s board of directors or shareholders to record decisions made on behalf of the company. It serves as an official record of the actions or agreements authorized by the corporation.

2. Why are corporate resolutions important?

Corporate resolutions are essential for maintaining a record of significant decisions. They demonstrate compliance with corporate governance laws and provide evidence of proper authorization for actions such as opening bank accounts, entering contracts, or appointing officers.

3. Who can pass a corporate resolution?

Corporate resolutions are typically passed by the board of directors or shareholders, depending on the nature of the decision. Routine business matters are often handled by the board, while major decisions like mergers or dissolutions may require shareholder approval.

4. What types of decisions require a corporate resolution?

Common decisions that require corporate resolutions include:

  • Appointing or removing officers or directors.
  • Approving major contracts or business agreements.
  • Authorizing loans or lines of credit.
  • Opening or closing bank accounts.
  • Issuing stock or dividends.
  • Merging, acquiring, or dissolving the company.

5. What should a corporate resolution include?

A corporate resolution typically includes:

  • The corporation’s name.
  • The date of the resolution.
  • A clear description of the decision or action.
  • The names of those approving the resolution.
  • A statement of the resolution’s adoption.
  • Signatures of authorized individuals, such as the board chairperson or corporate secretary.

6. Are corporate resolutions legally binding?

Corporate resolutions are legally binding as long as they are adopted in accordance with the company’s articles and applicable laws. They represent the official decision of the corporation.

7. Do corporate resolutions need to be notarized?

Notarization is not typically required for corporate resolutions, but it may be necessary in specific cases, such as when filing with government agencies or for transactions that require additional verification.

8. How are corporate resolutions adopted?

The board of directors or shareholders adopt corporate resolutions during formal meetings. A quorum must be present, and the resolution must receive the necessary votes for approval as specified in the company’s articles.

9. Where should corporate resolutions be stored?

Corporate resolutions are stored in the corporation’s official records, such as the corporate minute book. This ensures they are easily accessible for reference during audits, legal proceedings, or other business needs.

10. Do small businesses need corporate resolutions?

Yes, even small businesses structured as corporations should create corporate resolutions for significant decisions. This helps ensure compliance with corporate governance requirements and protects the corporate veil.

11. Can a corporate resolution be amended or revoked?

Yes, a corporate resolution can be amended or revoked through another resolution passed by the board of directors or shareholders, depending on the authority required for the change.

12. What is the difference between a board resolution and a shareholder resolution?

 

  • The Board of Directors passes a board resolution to handle routine business matters.
  • The Shareholders passes a shareholder resolution often for major decisions like mergers or significant amendments to the company’s articles.

13. Are there templates available for corporate resolutions?

Yes, some online legal resources provide corporate resolution templates, including:

  • Affordibly for customizable and affordable templates.

Having a template ensures consistency and helps you meet legal requirements.