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Unlike LLCs, corporations are required to make resolutions. Therefore, they are used to preparing them when shareholders or the board of directors make decisions. Although an LLC is not required to make resolutions, there are many reasons for getting in the habit of maintaining resolutions.
Something resolved or determined; decision. a formal expression of opinion by a meeting, esp one agreed by a vote. a judicial decision on some matter; verdict; judgment. the act or process of separating something into its constituent parts or elements.
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 resolution is a formal way in which a company can note decisions that are made at a meeting of company members. There are two types of resolutions: ordinary and special. Under the Corporations Act 2001, most of the decisions that affect a company need to be made by a resolution.
A corporate resolution is a written document created by the board of directors of a company detailing a binding corporate action. A corporate resolution is a legal document that provides the rules and framework for how the board can act under various circumstances.