An important document used to record decisions made by a board of directors is a board resolution. This agreement is crucial for the efficient operation of a business since it ensures that all board members are on the same page and that decisions are made in an open and accountable way. Whether or not board resolutions can be signed by the company secretary is one of the often asked questions.
The short answer is that the company secretary may sign a board resolution. A board resolution is no exception to the rule that all relevant documents must be properly drafted and signed by the company secretary. But it’s crucial to remember that the company secretary can only sign a board resolution if the board has given them permission to.
The official statement used to record the board of directors’ decision is the resolution’s sentence. It usually appears at the start of a board resolution because it is its most important component. The resolution’s final language should be succinct, straightforward, and appropriately reflect the board’s judgment.
On the other hand, a resolution letter is a letter that is intended to inform a third party of a decision. A shareholder, creditor, or other party with a stake in the business could be this. A resolution letter should contain the resolution sentence as well as any other pertinent details the recipient needs to be aware of.
A board resolution that is made in writing as opposed to orally is referred to as a resolution in writing. This is crucial since it ensures that the choice is accurately recorded and can be used as reference material later on, if needed. All members of the Board who were present at the meeting at which the resolution was made shall sign the resolution in writing.
Ordinary resolutions, extraordinary resolutions, unanimous resolutions, and written resolutions are the four primary categories of resolution. A decision made by the board’s members with a simple majority is known as an ordinary resolution. A greater threshold, often two-thirds of the board, is needed for a special resolution. A written resolution is one that is made devoid of a formal board meeting and necessitates the consent of all board members in order to be approved.
In conclusion, the company secretary may sign a board resolution, but only if the board of directors has given them permission to do so. A board resolution’s primary component is its resolution language, and a resolution letter is intended to inform outside parties of decisions. For effective documentation, a written resolution is essential. Businesses can choose from four different forms of written resolutions.
Ordinary resolutions, extraordinary resolutions, and unanimous resolutions are the three categories of resolutions. Ordinary resolutions must get a simple majority of votes to be approved, whereas unanimous resolutions need the consent of all members who are eligible to vote. Special resolutions require a higher vote threshold (often 75%). The exact issue that the board is debating will determine the type of resolution that is necessary.