When businesses are faced with internal issues or conflicts between shareholders, corporate resolutions can provide an effective solution. As a legally binding document, corporate resolution, also referred to as board resolution, can help an organization navigate isoitable tribulations while protecting interests of all stakeholders and creating clear methods of governance.

Understanding the intricacies of corporate resolution, as well as having access to the right advice and support can help business owners in the Los Angeles get their organizations back on track quickly and efficiently.

What is Corporate Resolution?

Simply put, a corporate resolution is an action or decision made by a board of directors. Once the board votes on an approved measure, a document is prepared that outlines the specifics. A corporate resolution becomes part of the company’s official records and is legally binding for all involved parties.

When issues arise within a company or between corporate stakeholders, a resolution can provide the most effective solution, as it not only allows the board to effectively settle matters, but also serves as a legally binding document designed to protect the interests of shareholders.

Common types of Corporate Resolutions

The amount of resolutions needed to be prepared is determined by a company’s internal needs, but there are certain common types of resolutions businesses may need to draft. Some of the most common types include:

Bylaw Amendment: Created when the board needs to amend existing rules or regulations, bylaw amendment resolutions must be officially entered in the legal documents

Distribution of Dividend: Used when shareholders are hoping to receive a return on investment, this type of resolution outlines the specifics of the payment

Bank Accounts: A bank accounts resolution is used to open or close the bank account of a business. Working policies outlined, including authorizing signatures and access parameters.

Investing or Lending Money: When a business decides to lend or invest money into other enterprises, a legal document outlining specifics, approved and signed by the board, is mandatory.

Employees: This resolution is drawn up when a board wishes to delegate duties or responsibilities to an employee, or to set up terms and regulations for payroll deduction.

Admission of a New Member: Commonly used when a new shareholder wants to join the board, this resolution outlines qualifications and responsibilities of the new member

Finding Dependable Counsel in Los Angeles

When properly drafted, resolutions can be an effective tool to help organizations to pass and implement measures in a satisfactory manner, while putting an end to conflicts between stakeholders.

That’s why it is essential to make sure that all corporate resolutions are legally binding. Finding dependable counsel in Los Angeles is a key step towards ensuring that all resolutions are properly enforced.

UpCounsel specializes in providing legal support to Los Angeles businesses. With its network of experienced corporate attorneys, UpCounsel makes sure that the documents are properly drafted and that all parties are legally bound to abide by the agreements set out in the resolution.

Whether you need a one-time consultation or an on-going freelance legal department, UpCounsel is well-placed to provide high-quality legal services at affordable prices. Many businesses in the Los Angeles area, as well as throughout the country, trust UpCounsel and its attorney community to provide them with the necessary legal advice and support.

The essence

Serving as legal binding documents, corporate resolution can help businesses tackle internal problems while laying out clear methods of governance. Finding dependable counsel in Los Angeles is key to ensuring that these documents are legally binding and that resolutions help the organization reach its goals quickly and efficiently. UpCounsel's network of experienced lawyers is well-placed to provide high-quality and cost-effective legal services in Los Angeles and beyond.

Topics:

Corporate Resolution,

Business Lawyers,

Los Angeles