Board Resolutions

Board Resolutions – What They Are and When to Use Them

When working with management documents, an important task facing the board of directors is to make a decision and formalize it through a board resolution. This article will explain what it is and when to use it.

Board resolution: what is it?

In the process of document workflow in companies, a resolution is a document created by an authorized person or official and reflects his decision. In a simpler version, this is a text containing the conclusion of the organization’s director, affixed to any documents.

This concept literally translates as “solution”; therefore, it is used when influential people do not just discuss but study in detail any issue, identify shortcomings, and look for ways to eliminate them. Based on the above, the characteristic properties of the resolution are:

  • involvement of influential individuals or organizations;
  • directed study of the situation and decision-making on this matter;
  • written form;
  • legal force;
  • assessment of the current situation, and not a forecast or statement of an already known fact;
  • a clear description of the content of the document.

Resolution functions on a document

The resolution on the document is affixed by the official to whom the document is addressed if its content requires the adoption of some operational decision or order. At the same time, in turn, the content of the requirements must have the form of an administrative document. He should clearly, and concisely give instructions on further actions for this business paper. However, the words must be clear and specific. Furthermore, the requisite must contain a specific indication of the nature and procedure for executing the act. Operational decisions made by managers, drawn up in the form of a resolution on a document, are put under the control of execution. In this case, the registration form indicates the terms and executors listed in the resolution, and the number of the business paper on which the mentioned requisite is affixed is used as the number.

The resolution performs a wide range of functions. First, the sighting, performed by an authorized person or body, expresses a specific decision on a particular issue. In document management, the main functions of the board resolution are:

  • The ability to replace administrative documents (the resolution is equated to administrative documents in terms of its legal force).
  • A way to once again confirm the awareness of a person or group of people in resolving an issue (for example, to show that the board of founders is directly involved in solving problems).
  • It allows the performers to follow the management’s orders: according to the prepared “scheme” and on time.

The board resolution is especially valuable in small companies when the management order is psychologically easier to reflect on paper than sound.

Types of board resolution

The instructions of the head in the resolution can be individual (one name of the performer is indicated) or collective (several names are listed). But the responsible executor is always the one whose surname is named first. It is he who is responsible for the organization of execution, the final resolution of the issue, the preparation of a response document, reports on the results of the execution and interacts with the secretary of the head or the control service in the process of removing the order from control or postponing the deadline for execution. The responsible executor has the right to establish intermediate deadlines for execution, convene operational meetings, and involve other employees to execute the assignment qualitatively. This general rule is usually enshrined in the company’s instructions for office work or other internal regulatory documents.