A corporate resolution is a
corporate action
A corporate action is an event initiated by a public company that brings or could bring an actual change to the securities—equity or debt—issued by the company. Corporate actions are typically agreed upon by a company's board of directors ...
, sometimes in the form of a legal document, that will be voted on or has been voted on at a meeting of the
board of directors for a corporation. The resolution could also be in the form of a "corporate action" which has the same binding effect as an action taken at a duly called meeting. For a corporate action, if allowed by state law and by the bylaws of the corporation, the board of directors may use a written document to waive formal notice of a meeting and unanimously consent to a resolution.
The resolution could be on just about any subject. One common subject, because it is required by banks and securities firms to open accounts, is to define which individuals are authorized to act on behalf of a
corporation
A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...
. This form of corporate resolution is also required by title agencies when selling corporate owned real estate. The form and structure of this document varies depending on the state in which the corporation is organized.
Resolutions are not required on Trust or Estate accounts. ''See:
Trust law
A trust is a legal relationship in which the holder of a right gives it to another person or entity who must keep and use it solely for another's benefit. In the Anglo-American common law, the party who entrusts the right is known as the " sett ...
.
References
External links
Wikibooks Debate/Motions and resolutions
{{DEFAULTSORT:Corporate Resolution
Resolutions (law)
Board of directors