What is a Corporate Resolution?
(back to top) Corporate Resolutions record the major decisions taken by the corporation’s Shareholders or Board of Directors during a meeting. While not always required, it is a good idea to record your actions in the form of Corporate Resolutions because Resolutions show third parties that the actions were taken by and on behalf of the corporation. Some Corporate Resolution may be passed only by the Shareholders; others, only by the Board of Directors. Some must be passed by both groups.
This is the means of recording an action taken by the Board, authorizing or approving an issue in advance. RATIFICATION – What is this? As our Minute/Record Book is the legal “memory” of our corporate entity, it is imperative to have good records and no “gaps.” If and when we discover a business action has been taken (I.E. a change of signatures on thAe Ministry checking account at the Bank) without a prior meeting and written resolution of the Board, we must go back and get it in the Minutes. But How? A back dated resolution is illegal. That would be a falsification of records. The proper or legal way is to write a resolution ratifying this past action. This is how thousands of business do it every day. Remember, if it is not in the Minute Book, it could be said, “it never happened.” See SAMPLES for materials we have written to help you address this problem. An organizational meeting. What is the “organizational meeting?” I describe this meeting as the “Birthing process” of the corpor
