Llc Resolution of Board Agreement

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LLC Resolution of Board Agreement: A Guide to Understanding and Drafting

If you`re a member or manager of a Limited Liability Company (LLC), you may be familiar with the need for LLC resolutions. An LLC resolution is a legal document that outlines the decisions made by the members or managers of an LLC. These resolutions serve as written evidence of the decisions made during the LLC board meetings.

One of the most important LLC resolutions is the LLC Resolution of Board Agreement. In this article, we`ll provide a guide to understanding and drafting an LLC Resolution of Board Agreement.

What Is an LLC Resolution of Board Agreement?

An LLC Resolution of Board Agreement is also known as a Board Resolution or Manager Resolution. This document outlines the decisions made by the board of managers or members of an LLC. The LLC resolution is a significant legal document that serves as evidence of an LLCs decision-making process.

An LLC`s board of managers typically signs the Resolution of Board Agreement. The resolution reflects the decisions made during the board meeting, including authorizing specific actions, adopting policies, and approving significant transactions.

Why Is an LLC Resolution of Board Agreement Necessary?

An LLC Resolution of Board Agreement is necessary for several reasons. First and foremost, it provides a clear record of the decisions made by the LLC`s board of managers. The resolution helps prevent any confusion or misunderstandings that may arise in the future regarding the decision-making process.

Additionally, an LLC Resolution of Board Agreement serves as a legal document that is enforceable in court. If any disputes arise regarding the decisions made by the board of managers, the resolution serves as evidence of the agreement reached during the board meeting.

How to Draft an LLC Resolution of Board Agreement

To draft an LLC Resolution of Board Agreement, follow these steps:

1. Identify the Purpose of the Resolution

The first step in drafting an LLC Resolution of Board Agreement is to identify the purpose of the resolution. For example, the purpose of the resolution may be to authorize a significant transaction, approve a new policy, or appoint a new manager.

2. Determine the Decision-Making Authority

Next, determine who has the decision-making authority in the LLC. This will depend on the LLC`s operating agreement. If the LLC is member-managed, the members will have the decision-making authority. If the LLC is manager-managed, the managers will have the decision-making authority.

3. Include the Date of the Meeting

Include the date of the board meeting where the decision was made. This helps ensure that the resolution is accurate and reflects the decisions made during the meeting.

4. Include a Clear Statement of the Decision

Include a clear statement of the decision made during the board meeting. Be specific and provide details about the decision.

5. Sign the Resolution

Once the LLC Resolution of Board Agreement is drafted, it must be signed by the board of managers or members. All board members should sign the resolution to indicate their agreement with the decision made.

Conclusion

An LLC Resolution of Board Agreement is a crucial legal document that outlines the decisions made by an LLC`s board of managers or members. The purpose of the resolution is to provide a clear record of the decision-making process and to serve as evidence of the agreement reached during the board meeting. By following the steps outlined in this article, you can draft an accurate and enforceable LLC Resolution of Board Agreement.