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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.
What's in this guide?
- What is a resolution of members?
- When should I use a resolution of members?
- What does a resolution of members include and not include?
- Resolution of members vs directors resolution
- How effective is a resolution of members?
- Do I need a lawyer to send this document?
- Get access to customisable resolution of members templates online
- How do I write a resolution of members?
- Where to get free legal documents and templates like a resolution of members
What is a resolution of members?
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.
When should I use a resolution of members?
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.
What does a resolution of members include and not include?
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.
Resolution of members vs directors resolution
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.
How effective is a resolution of members?
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.
Do I need a lawyer to send this document?
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.
Get access to customisable resolution of members templates online
Does your company belong in this list?
How do I write a resolution of members?
A resolution of members should be simple and to the point. The document should include essential information, such as:
- Your company name
- The date, time and location of the meeting
- A statement confirming that all shareholders agree to the resolution
- Confirmation that all shareholders necessary are present
- Name of shareholders present
- The number of shares held by each shareholder voting
- Details of the resolution
- Shareholder names and signatures
Where to get free legal documents and templates like a resolution of members
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.
- Lawpath. Lawpath is an online legal resource for small businesses and entrepreneurs. Users can browse free samples on their website but must sign up to access customisation options.
- Law Depot. Law Depot provides a broad array of free online documents to choose from. Quickly fill them in online before downloading the documents straight to your computer.
- LegalVision. LegalVision offers users unlimited use of free legal document templates for a monthly membership fee of $199 or one-off download fee.
- Wonder Legal. Browse more than 140 legal document templates with Wonder Legal, all of which can be purchased for a one-time fee. Although free to browse, it'll cost $4.99 to download and customise a resolution of members template.
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