7.6 Drafting resolutions

7.6 DRAFTING RESOLUTIONS

Drafting resolutions involves preparing the text and content of the resolution document in a clear and concise manner.

Steps to consider when drafting resolutions

1. Title and introduction

Start with a clear and descriptive title for the resolution, indicating the purpose or subject matter. Include an introductory paragraph that sets the context and provides a brief background or explanation of the resolution.

2. Resolving clauseThe resolving clause is the core part of the resolution where the decision or action to be taken is stated. Use clear and unambiguous language to express the intended decision.
   3. Statement of reasons or purpose

   Depending on the nature of the resolution, it may be helpful to include a statement of reasons or purpose. This section explains the rationale or justification for the proposed decision.

   4. Detailed provisions

   If the resolution involves specific actions, amendments, or provisions, provide a detailed description of what is being proposed. Be specific, clear, and precise in outlining the details and scope of the proposed actions or changes. Include any relevant conditions, timelines, or restrictions associated with the resolution.

   5. Voting requirements

   Clearly state the voting requirements for the resolution to be passed. Specify the majority or percentage of votes needed for approval (e.g., simple majority, two-thirds majority, etc.). Ensure the voting requirements comply with the company’s constitution and applicable laws.

   6. Effective date and implementation

   Indicate the effective date of the resolution, especially if it differs from the date of the meeting or signing. If the resolution requires further implementation steps, outline the necessary actions or processes to be undertaken.