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Unanimous Consent basics

Scheduling a formal meeting can be difficult when people lead busy lives. If you are a part of a board of directors or group of shareholders and need to record an official action, and everyone agrees with that action or decision, then a Unanimous Consent can cut to the chase without calling for a meeting.


What is a Unanimous Consent Agreement?


A Unanimous Consent Agreement allows you to record official actions of the directors and/or shareholders of a corporation that were taken by unanimous consent, rather than as part of a formal meeting.


How does unanimous consent work?


Unanimous consent is often used to expedite proceedings by eliminating the need for formal votes. Typically, an action is permitted if no stakeholder objects, however, if anyone objects, then the action is rejected, and a voting meeting will likely be required.


When is a Unanimous Consent Form used?


Some common scenarios where a Unanimous Consent Form may be used are in the appointment of new directors or officers, the adoption of new documents or plans, the establishment of salaries, and the approval of past or future financial transactions.


Who should sign a Unanimous Consent Agreement?


All deciding parties should sign the document. In most cases, this would mean the board of directors or the shareholders.


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