TrainRocket.com helps you document every process and policy in your business so you can onboard, train, and scale faster.
Get started with TrainRocket.com for FREE!
A corporate resolution is a form of action taken by a corporation. It typically takes the form of an official document. The document is a corporate resolution template. The board of directors will vote on the resolution. The resolution may also come in the form of a “corporate action,” which is filed by the board of directors. They’ll use the document for notice of the meeting, then formalize their agreement with the chosen resolution.
One advantage of a corporate resolution over a traditional mission statement is that it can be about any topic or subject. You can use it to define the people authorized to act on behalf of their corporation.
This is because security firms and banks require you to confirm your identity before opening an account. Certain agencies which handle property sales will require a corporate resolution form. This is needed when selling real estate owned by the corporation.
The format of the document may vary depending on the state in which you organize your corporation. It’s important to create a template for making corporate resolutions. You need to set goals during the course of the year to help you make relevant decisions.
It’s imperative to document all of the corporation’s decisions, especially if it has multiple directors and shareholders. Due to these factors, such documents can be simple or intricate.
Table of Contents
- 1 Corporate Resolution Form Samples
- 2 Using the corporation resolution forms
- 3 Corporate Resolution Forms
- 4 There are several types of corporate resolution forms
- 5 Corporate Resolution Examples
- 6 Drafting a corporate resolution form
- 7 Here are some mistakes to avoid when writing a corporate resolution form
Corporate Resolution Form Samples
Using the corporation resolution forms
A form for corporate resolutions contains information about the major decisions made by a corporation. Use the following corporate resolution template to identify which individuals are legally authorized to:
◉ Sign official documents;
◉ Make assignments or transfers;
◉ Lease or sell real estate and
◉ Make other relevant decisions for the corporation.
A corporation is an entity with different levels of responsibility. It’s an entity that exists apart from and independently of its shareholders. A corporation can be treated, for legal purposes, as a person. As such, it can be given rights similar to those given to individuals. In addition, a partnership has additional recordkeeping responsibilities and other formalities.
Individuals within the corporation who have been given that authority by the corporation can do things for the corporation that are legally binding. But to do so, they need to submit a corporation resolution sample. They also need to ensure that the format is approved by the state.
After this, they must file their records. Corporate resolutions are saved only for major decisions made by an organization. Such decisions should include:
◉ Anything which impacts the corporation’s ownership;
◉ Any relevant financial decisions;
◉ The selection of top employees or new officers and
◉ Disagreements or issues between those who are part of the corporation.
Resolutions needed to perform certain actions are usually adopted by a company. A few examples of the things that a will can be used for: executing contracts, opening bank accounts, etc. In these situations, the owners or directors must all talk with one another.
When this happens, they’ll be able to do business effectively. Resolutions can sometimes be a useful way to resolve conflicts or disagreements. For instance, shareholders may not agree with a corporation’s practices.
Official resolutions are not necessary for day-to-day business transactions like:
◉ Ordering supplies for the office;
◉ Employing or terminating low or mid-level employees;
◉ Paying suppliers.
However, there are also issues which require a corporate reorganization. In order to understand the document better, let’s take a look at these issues and situations:
◉ When a corporation issues shares to new and existing shareholders.
◉ When you are approving a significant lease or purchasing real estate.
◉ When authorizing a large loan or credit line.
◉ When you make elections for state and federal taxes.
◉ When you are considering retirement plans or stock options.
◉ When changing fringe benefits or key insurance plans, there are certain steps to take.
◉ During shareholder and director meetings.
All these are situations that corporations typically resolve with a corporate resolution form. Documenting the project will create a paper trail, which will be very helpful if there is ever an audit. Eventually, officers of the corporation, banks, and other interested parties may wish to see the official documents.
Many people choose to incorporate. One reason for this is to limit personal liability. However, some corporations fail to follow the incorporation laws. When this happens, they won’t be able to benefit from incorporating. Because of this, it is important for the corporation to follow rules. They should keep records, hold shareholder meetings, separate finances, and more.
Corporate resolutions are necessary in this and many other situations. By implementing it, the corporation will stay in compliance with all applicable laws. Resolutions such as these are a corporation’s guiding principles. A corporate resolution is a document formally recording all the major decisions made by a corporation.
Corporate Resolution Forms
There are several types of corporate resolution forms
There are many corporate resolution templates that you can create. You can create your own template. If you choose to download one, make sure to check the contents. If you need additional information, just add it in. If you do not need any of the information on the page, simply remove it.
The important thing is to keep on modifying the document, and to do this repeatedly until it suits the needs of your corporation. You can create templates for:
◉ Adoption of corporate resolution
◉ Corporate authorization
◉ Corporate banking
◉ Corporate board of directors
◉ Signing authority.
The board of directors for a corporation may occasionally undertake a major decision or action. When these situations occur, they use a corporate resolution form as a legal document to record the event.
This document becomes useful when all board members agree on a decision. They would then enter the resolution in their assembled form. Therefore, you need to create a well-structured template to use as needed.
This form is especially useful for corporations and companies. They can consult it when they’re trying to resolve a dilemma or make a difficult decision. If you plan to create the template yourself, you need to follow the correct format and include all relevant information.
Corporate Resolution Examples
Drafting a corporate resolution form
When you make a decision, document your decision using a corporate resolution template. A corporation can resolve an issue or conflict in the following way. After filling up the template, the board of directors needs to sign it to make it official.
A well-made document will effectively express the subject of the resolution and include the details of the final decision and the signatures of those involved. Whenever you make a major decision or resolve a conflict, you need to record it in some way.
This will create an official record of what happened inside the corporation. Such records can be useful if there are any questions about the issue. They’re helpful in case you’re facing a lawsuit. Keeping a database of corporate resolutions gives you a way to review past decisions. You can use them to plan your organization’s new initiatives. Here are some tips for writing your business template:
◉ Your organization’s legal name should be clearly stated near the top of your paper. Placing it there will show that your document is important and official. A company can also be called a firm or a business and may operate under several corporate legal structures.
◉ Next, add the location of your meeting. Also, add the date and time, as well as the number of people who must be present in order to have a valid meeting. It included the names of every person who attended the meeting, including all board members in attendance.
◉ The members of the meeting agreed to include all the resolutions in their next newsletter. They decided to describe in detail each decision and represent each decision separately. If you choose to, you may include the details of the action taken about this matter. You may also add the results of the vote.
◉ End the document with a statement that verifies that all information you presented in it is true. Also, have the participants in the meeting sign the document at the end of the meeting. These officials include the chairman, vice chairman, corporate treasurer, and corporate secretary.
You can make various kinds of corporate resolutions. Create a template to document internal records along with the details of all the decisions the board made. You can also make one to give to third parties such as banks.
These are often standardized, and are used for many different transaction types. Include all the details in your resolutions meant for internal documentation. When making a written document with the intent of presenting it to someone else, simplify it.
Here are some mistakes to avoid when writing a corporate resolution form
There are many sample corporate resolutions out there. It’s typically used in companies and corporations. You use this document when you engage in an important corporate action.
The company’s board of directors will either vote on or will have already voted on the actions described in the template. They’ll do this at a corporate-wide meeting that they’ve called for this purpose.
The document can be used to present any decision or issue made by the corporation. The document is typically used in the following situations. Use it to represent the people who have been authorized to act on behalf of the company.
You can also use the document to make decisions about property purchases and other business ventures. The document is not required in all situations. But it is always better to have it for the protection of the corporation.
The corporate resolution template is a legal document and you may need it in case of discrepancies, disputes, or legal issues. It is important to take care with such important documents.
You can’t create a document that is unclear or hard to understand. To create a legal document that’s succinct and clear as possible, use as few words as is reasonably possible.
Especially true when the document is for business purposes. When making such a document, it is crucial to be careful and precise. These are some mistakes to avoid as you create your document:
Avoid using passive tones
It’s usually better to write in the active voice instead of using the passive voice. Passive voice muddles meaning. It’s better to have the subject perform the action. This makes sentences clearer.
Stay away from ambiguous pronouns
Ambiguous pronouns refer to more than one antecedent. Using pronouns might cause your readers to be uncertain as to what you’re referring. So be careful when using them.
Don’t use unnecessary words
When you’re writing your document, you have the option of not making it too long. It’s better to create a short document that can be understood quickly. To convey your message, state the point up front.
Don’t over-use legalese
While legal jargon is often useful for writing legal documents, overuse of such terminology can make your document confusing. If you use clear and direct language, your corporate resolution form will be more effective.
Don’t forget to proofread
Catching spelling and grammatical errors is one of the most important parts of making legal documents. Always proofread your work, no matter what kind of template you make. Check for spelling or grammatical errors. You can ask other people to proofread your document to ensure that the information is accurate and professional.
They may notice errors that you’ve overlooked after you’ve checked the template.