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Such processes can be laid out in a corporate resolution form, usually known as the operating agreement. The agreement can also specify whether or not the decision-making is to be agreed upon by all members or a majority of members.
A corporation's board of directors prepares and adopts bylaws when the corporation is first formed. Bylaws document the rules for how the corporation shall be governed. Resolutions are prepared as needed to document important decisions and actions taken by the board of directors on behalf of the corporation.
Corporate resolution (also known as a board resolution) is a written legal document, issued by the board of directors of a corporation, documenting a binding decision made on behalf of the corporation.
A corporate resolution generally involves major decisions such as the changing of ownership structure, voting in of new board members, or the sale of company shares. A corporate resolution is also generally used to authorize people to access corporate funds, sign checks and acquire loans on behalf of the corporation.
A Corporate Resolution is a way of documenting a decision made by a Corporation's Board of Directors or Shareholders on behalf of the Corporation, or by Members on behalf of an LLC. The Corporation or LLC might decide to extend a loan to another business, or to vote another officer onto the Board.
The articles of incorporation and corporate resolutions aren't the same. Articles of incorporation document establish the existence of a corporation, while a corporate resolution records the actions and decisions of a corporation's board of directors.