Legal Definitions - corporate resolution

A corporate resolution, also known as a board resolution, is a legal document that records a decision made by the board of directors of a corporation. This document is binding and outlines the actions that the corporation will take.

Corporate resolutions are typically made during board meetings and are recorded in the minutes of the meeting. They are used to make important decisions that affect the corporation, such as:

• Changing the ownership structure
• Voting in new board members
• Selling company shares
• Authorizing access to corporate funds
• Signing checks
• Acquiring loans on behalf of the corporation

For example, if a corporation wants to sell shares to raise capital, the board of directors would need to pass a corporate resolution authorizing the sale. This document would outline the terms of the sale and the actions that the corporation will take to complete the transaction.

Another example would be if a corporation wants to authorize a specific individual to sign checks on behalf of the corporation. The board of directors would need to pass a corporate resolution authorizing this action and outlining the specific terms and conditions of the authorization.