
Get exclusive money-saving offers and guides
Straight to your inbox
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
It's important for a business to get all of that legal stuff right. That's why we've taken the time to tell you about the ins and outs of writing a "resolution of members", along with how to find the easiest solution – a legal template.
A resolution of members is a written document that allows a company to pass simple resolutions and make agreeable decisions without the need to hold a shareholder meeting. Shareholders can maintain control over the company by exercising their voting rights in this way.
While some company decisions remain within the power of the directors, there are several issues where the shareholders also legally have a say in the matter. This can include instances where the directors are changing, certain corporate documents are being altered or the company is being dissolved.
A resolution of members should be a concise document that includes only the essential information. The idea of it is to eliminate the need for a large meeting of shareholders, while still giving the correct people the chance to exercise their voting rights.
Key elements to include in the document are when the resolution was made, who the shareholders are, what the resolution is and the signatures of agreement of all members involved.
A resolution of members and a directors resolution both enable companies to pass resolutions without having to hold a meeting. The main difference between these two types of resolution is that they involve different people and cover different matters. Whereas a resolution of members must involve the main shareholders in a company and covers more significant structural changes to the company, a directors resolution simply involves the board of directors (usually fewer people) and covers internal matters such as taking on a new contract or authorising a bank loan.
A resolution of members can save a lot of time. It's an effective method of shareholder consent before making any structural changes to the company. Problems can arise when a high percentage of stakeholders disagree with the resolution. That's why a resolution of members is only recommended when addressing changes that are likely to be accepted by everyone.
No, a lawyer isn't wholly necessary to send a resolution of members. It's a relatively simple document, but it can be useful for a legal professional to look over it to make sure the wording is correct and everything is included. To get started straight away, legal templates can be a useful place to start.
A resolution of members should be simple and to the point. The document should include essential information, such as:
Resolution of members template from Lawpath
The Internet is teeming with legal resources that you can get your hands on for free or for a small fee. Here are a few places we'd recommend starting your search.
The skills, equipment and legal documents needed to start a delivery business.
Nurture your dream of starting a daycare company with this step-by-step guide.
Learn the key considerations when it comes to starting and growing your smartphone app company.
Start your own eBook writing business with our guide to the skills, equipment and legal documents you’ll need.
Here are all the things you need to know for a successful gardening business.
From the legal to the practical, here's what you need to know before opening a dog boarding company.
Find out how to turn your passion for homewares into a profitable business.
Before you start a tech support business, there are a few topics you need to consider.
The ABCs of starting an automotive repair business.
Learn how you can get started on your journey to a profitable career as a mechanic.