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What is a Resolution in Business?

In a business context, a resolution is a formal decision taken by a corporation's board of directors or shareholders at a meeting. The resolution, documented in the meeting's minutes, can pertain to governance, policies, or specific actions.

Understanding the Importance of Business Resolutions

A resolution is an official document that outlines a suggested course of action that is adopted by a company. This can help ensure that everyone in the company is on the same page when it comes to changing policies, decisions, and goals within the organization. Business resolutions are important for any business in order to maintain consistency and accuracy in daily activities. It also helps in managing internal and external conflicts and identifying potential risks or opportunities.

Business resolutions provide clarity and direction to the business as it undertakes its operations. It allows everyone to have a clear understanding of the desired outcome of the business’s actions, and it helps ensure that everyone in the business is working together to achieve the desired goal. It also serves as a reminder that the business is committed to taking care of its stakeholders.

How to Draft a Business Resolution

Drafting a business resolution is an important part of operating a successful business. This document serves as a primary reference to changes within the organization and should be crafted with care. When drafting a resolution, the following are the most important elements to consider:

  • Decision Statement: A resolution must clearly state the desired outcome of the resolution and provide guidance on how to go about achieving it. It should be designed to avoid causing conflict and should include the necessary information that will help the business come to a decision.
  • Implementation Plan: The implementation plan outlines how the business will implement the desired outcomes of the decision. This should include timelines, resources needed, and a clear outline of responsibility.
  • Documentation: The resolution must also provide any pertinent information that will help to support the desired outcomes. This documentation should include any relevant contracts, agreements, and other supporting documents that help to support the decision.

Examples of Business Resolutions

Progress within a business is made through implementations of various resolutions. Here are some examples of business resolutions:

  • A resolution to change the rent rate in a commercial lease agreement, outlining what will happen when the rate is adjusted.
  • A resolution that outlines the criteria for allocating resources to a project, such as budgets, personnel, and other items.
  • A resolution to modify the terms of employment for existing employees, like changes to salaries, benefits, or working conditions.
  • A resolution to close an existing business operation, such as the sale of a business, closure of a branch, or dissolution of a contract.

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