In order to make sure that your company is legally separated from your personal actions, decisions that the company makes have to be recorded. To do that, managers (directors or managing members) hold meetings where resolutions are adopted. Resolutions are official actions of the company. When your company is formed, PUSHTOSTART provides several written resolutions that you and the other owners adopt to formally launch your company. Companies adopt resolutions when important decisions are made, like making or taking a loan, hiring officers, or issuing new ownership interest.
Written Consents are written versions of resolutions that are adopted without having to have an official meeting. They are often useful when everyone is in agreement and no meetings need to be held to discuss the company’s actions. Most states require that in order to adopt a company action by written consent, the decision has to be unanimous, though in certain states the company may set forth rules modifying how a written consent is adopted.
Resolutions and written consents make up a large part of a company’s corporate governance. Corporate governance is the term for the legal and formal operation of the company (LLC or corporation) as a functioning entity. Many companies manage their own governance, while others appoint an officer or hire a lawyer to manage their corporate affairs.