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HOW IT WORKS
How it works
A Corporate Resolution is the record of any major decision made by shareholders or a board of directors during a meeting. Basically, what happens at any important corporate meeting is that a group of individuals—typically, the board of directors—decide the direction the company should take. Perhaps it should buy a smaller business, take out a loan, or buy property. These actions are voted upon and a Corporate Resolution serves as documentation of the decisions made.
Corporate Resolutions can cover a wide variety of actions. Commonly, they are written when a new member of board is voted in, but they can also be created when the company wants to hire employees, sell shares of the corporation, purchase an existing patent, among other big decisions. They serve as important compliance documents as well as giving your company a concrete record of the choices your directors or shareholders have made.
Generally, Corporate Resolutions do not need to be submitted to a government agency, oversight body, or anything of the sort. They should be kept with your books so you can furnish them if, for example, an important shareholder wants to know what actions the board took on his or her behalf. Corporate Resolutions can be kept with your Meeting Minutes and are treated as legally binding decisions made by your S- or C-Corp.
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