To wind up and dissolve a firm, the directors of a company may decide that voluntary liquidation is in the business’s best interests or broader group. In this case, voluntary liquidation processes may be started without the involvement of a court. The orderly winding down of a Limited Liability Company via a voluntary liquidation of a UAE LLC ensures that all debts are paid in full, all employee visas are revoked in opposition to the license, and all UAE government licenses are closed. A resolution by the Board of directors to dissolve a corporation may be made for several reasons, including insolvency, retirement, a change in career path, or the firm no longer meeting the owners’ needs.
What is A Board Resolution?
Board resolutions are official recordings of the Board of Director’s choices at meetings. They are also frequently referred to as “Directors’ Resolutions”. The board resolution is a formally worded motion used to document the specifics of a decision made by an organization, including who voted and their involvement. The Board of Directors’ meeting minutes may occasionally include the board resolution, a legally binding document. If the Board is required to show that the board members were involved in certain corporate or organizational decisions, Board resolutions act as legal documents that also function as compliance records.
Board Resolution for Winding up of Company
To dissolve an LLC in the UAE, you must first confirm that the shareholders of the business, or their Power of Attorney, who is authorized and certified to sign the Board Resolution to wind the company, are accessible in the UAE. At a general meeting of the company’s shareholders, a Shareholder or Board Resolution for Winding up of Company must be adopted when the resolution to dissolve the business is reached and a liquidator is chosen. A UAE Notary Public must create the Board Resolution and notarize it.
You may want to know: Board Resolution Format For Appointment Of Director
A Board Resolution: How Do You Write One?
The structure for a resolution is surprisingly brief and easy to follow, even though it is an important document and a legal record. Sometimes the wording used in board decisions is highly formal, and other times it is straightforward. Resolutions adopted by the Board shall be in writing on the organization’s letterhead. The language only states what the Board decided to do. Additionally, it includes the parties to the resolution’s resolution and the action’s date.
HOW TO WRITE BOARD RESOLUTION?
The decisions taken by the Board are legally binding even if a board resolution is not a legal document. As a result, it adheres to a specific format and necessitates using a particular language when written. First, let’s examine the components of the fundamental structure of a Board Resolution:
- Date of Meeting
- Resolution number. Example: 001, 002, and so on
- The correct title for the board resolution. For instance, “A Board Resolution for Winding up of LLC”.
- A formal “Whereas” starts each paragraph.
- The Board’s obligation is established in the opening clause.
- The conclusion is stated in the last paragraph. The Board’s response to the proposal is what constitutes the action.
- The directors’ names are shown at the bottom, along with a column for them to indicate whether they voted “yes” or “no.” Only a majority of votes must be “yes” for a resolution to pass.
- The board resolution’s date and the signature of the meeting chairperson are included at the end of the document.
You should know: What Is Board Resolution Attestation And Why Is It Required?
Writing a Board Resolution: The Best Practices
The board resolution will likely address significant business issues. Therefore board members may believe that drafting it is a complex procedure. Being precise and thorough, especially concerning the details, is crucial.
The following suggestions will make crafting a board resolution less intimidating for you:
Way of Writing Board Resolution
- Simple and succinct language should be used when writing your board resolution.
- The board resolution should be written in an official tone at all times.
- You must cite trustworthy and reliable sources for transparency and credibility.
- If the board resolution is lengthy, don’t worry about it; what matters is that you have covered all the necessary ground.
Things to consider while writing the board resolution
- Have an in-depth understanding of the topic you plan to write about. If necessary, research the problem.
- Consider all previous board resolutions as you write the board resolution number, then write the number appropriately.
How many Legal Drafting Experts at Notary Public Dubai assist you?
In the UAE or any region, including Dubai, board resolution legal drafting services are not highly prevalent. In the United Arab Emirates, Notary Public Dubai provides the most efficient legal drafting services. Additionally, we offer attestation services for many papers, including official business, personal, and academic papers. Please don’t hesitate to contact our Legal drafting experts if you need legal drafting services.
Manal Elysyed carries with her an extensive experience of 20 years across a full range of notarial and legalization matters. It is this experience that helps her in delivering the right notary solutions to clients from diversified industries.