An agreement of purchase and sale for commercial real estate may be entered into and carried out by a corporation with the help of a board resolution. Important explanations and writing advice are contained within the Drafting Notes for this Standard Clause. Writing board resolutions is a crucial skill for running a corporation. Resolutions are simply a formal means for a group of people to declare the activities they plan to take.
What Is A Board Resolution Agreement?
A board resolution agreement is only a legal record that offers a formal means for boards to put decisions they make in writing. Board resolutions are referred to as legally binding board decisions. Resolutions and certificate attestations should be kept alongside the board’s meeting and office records. A successful board resolution is a hallmark of strong governance. Writing a board resolution may benefit significantly from the board resolution agreement.
Boards use resolutions primarily as a means of liability defense. Rarely may shareholders want to examine board resolutions to understand more about the activities and choices that the board made on their behalf. The board resolution agreement is primarily needed when establishing a firm in Dubai or another country is necessary. Additionally, it is required for loans with extended terms. This agreement will be helpful if a business wishes to submit a new patent application, sell shares, or buy any real estate.
You may want to know: What Is Board Resolution Attestation And Why Is It Required?
Board minutes vs board resolutions
Board resolutions and board minutes are more easily confused with one another. Despite being closely related, there are few distinctions between the two. The primary difference is that a board resolution is an official action or decision made by the board of directors at any time a board meeting is convened. On the other hand, board minutes relate to a written record of the events or actions that occurred during the relevant meeting. Remember that the minutes include the whole meeting, from the beginning to the finish. It contains, among other things, talks, proposals, and rejections.
Board Resolution for the Purchase of Property
Any property purchased under a company’s name must first have the board of directors’ consent. For the board to give its opinion on which land seems to be a good place for the intended purpose, it would be advisable for the management of the company to also seek the board’s advice before finalizing the selection of the land. It can be done by presenting to the board the details of a few selected lands the company can buy and why they were chosen. The cost of investing in real estate is high. The business should get Board resolution approval before entering into the purchase agreement. If not, the company runs the danger of being financially devastating.
you should read: Board Resolution For Winding Up Of Company
How to write a Board Resolution?
- Date and Resolution Number
Put the date and resolution number at the top to format the Resolution. You may give it whatever number you want if it’s the board’s initial Resolution. Consider starting with something like 0001 and assigning a sequential number to each subsequent Resolution.
- Proper Title of Resolution
Create a resolution title that addresses the problem you wish to describe. An example might be “Board resolution for the purchase of Property.”
- Written in Formal Language
The body of the Resolution should be written in formal language. It must include the phrase “whereas” at the start of each new paragraph. The board’s responsibilities should be mentioned in the first sentence. For instance, “WHEREAS, the Board of Directors deems it desirable and in the best interests of this corporation to acquire that certain property.”
- Include all the relevant points.
Continue to write down each of the Resolution’s main points, starting each paragraph with the word while.
- State the Resolution taken
The final Resolution—the decision made by the board—should be stated in the Resolution’s last paragraph.
- List the names of the board members voting on the Resolution.
The board members’ names and the slots next to them on the Resolution where they may mark a “yes” or “no” vote should be included at the bottom. When the majority of the board members vote “yes,” the Resolution is undoubtedly adopted.
The board president should also have a spot to sign and date the Resolution.
Do you want to know: Board Resolution Format For Appointment Of Director
How Can A Board Resolutions Agreement Be Obtained In Dubai?
These board resolution writing services are not very common in the UAE or any of its areas, such as Dubai. Aside from business formations in the UAE, our drafting specialists at the Notary Public in Dubai provide the finest drafting services for agreements. We offer services to various types of papers, including those that are personal, professional, or academic. It resembles an attestation service.
Why choose Notary Public Dubai?
Among the top consulting companies in Dubai, Notary Public Dubai has a long history of drafting services. We establish a solid and reliable connection with customers by providing our services to them. We provide quick and trustworthy services. We provide our board resolution writing services in all UAE emirates. We strive for client happiness and convenience while providing services of exceptional quality.
To know more about our drafting services, don’t hesitate to contact us.
Syed Hassan Ali has an experience of 13 years and is highly specialized in providing legal consulting for all types of notary requirements. By utilizing his diverse and deep knowledge, he has consistently aided individuals and organizations in finding flexible and timely solutions.