Corporate Resolution

DEFINITION of 'Corporate Resolution'

A written statement made by the board of directors detailing which officers are authorized to act on behalf of the corporation. The corporate resolution will be found in the board minutes detailing decisions made by the board during the meeting.

BREAKING DOWN 'Corporate Resolution'

The board of directors in a corporation are responsible for making major corporate decisions such as dividends, election of board members, and secondary offerings. For example, a corporate resolution will be created if a board decides to increase the size of the dividend paid to shareholders. The resolution will detail the terms of new dividends along with the date of the board meeting.

Corporate resolutions are also used to identify corporate officers that can trade, assign, transfer or hedge on behalf of the corporation.

RELATED TERMS
  1. Board Of Directors - B Of D

    A group of individuals that are elected as, or elected to act ...
  2. Chair Of The Board - COB

    The most powerful member on the board of directors who provides ...
  3. Classified Board

    A structure for a board of directors in which a portion of the ...
  4. Inside Director

    A board member who is an employee, officer or stakeholder in ...
  5. Staggered Board

    A staggered board consists of a board of directors whose members ...
  6. Business Judgment Rule

    A regulation that helps to make sure a corporation's board of ...
Related Articles
  1. Markets

    How Your Vote Can Change Corporate Policy

    Shareholders are getting a bigger say in how companies are run. Find out how you can be heard.
  2. Markets

    What Does the Board of Directors Do?

    Every public company must have a board of directors. These boards establish administrative policies including the hiring and firing of executives, the distribution of dividends, and executive ...
  3. Financial Advisor

    New Year's Resolutions: How to Help Clients Adhere

    Clients setting new resolutions is one thing, but it can be hard to achieve financial goals for some people. Here's how advisors can help.
  4. Markets

    5 Of 8 Big Banks 'Failed' By U.S. Regulators (MS, WFC)

    Banks must submit a living will, describing the company's strategy for orderly resolution under bankruptcy in the event of material financial distress
  5. Investing

    What are the fiduciary responsibilities of board members?

    Find out what fiduciary duties a board of directors owes to the company and its shareholders, including the duties of care, good faith and loyalty.
  6. Markets

    Wal-Mart to Cut Board of Directors Down to Size

    Amid its struggles to engineer new growth, Wal-Mart (NYSE: WMT) announced it was paring down the size of its board of directors from 15 to 12 members. While one of those directors retiring and ...
  7. Markets

    The Currency Board: Understanding The Government's Bank

    Currency board, central bank - what's the difference? Find out more about this little-known monetary authority.
  8. Investing

    Due Diligence On Dividends

    Understanding dividends and how they work will help you become a more informed and successful investor.
  9. Personal Finance

    S Corp. Vs. LLC: Which Should I Choose?

    Understand the major distinctions between an S corporation and an LLC, and the important factors to consider when choosing your business structure.
  10. Investing

    What is a Corporation?

    A corporation is an organization—usually a large business—with specific characteristics.
RELATED FAQS
  1. When a corporation wishes to open a margin account with a broker-dealer ...

    The correct answer is b. Whenever a corporation opens an account with a broker-dealer, a resolution by the board of directors, ... Read Answer >>
  2. How do a corporation's shareholders influence its Board of Directors?

    Find out how shareholders can influence the activity of the members of the board of directors and even change official corporate ... Read Answer >>
  3. What is the difference between a president and a chief executive officer? Can there ...

    In general, the chief executive officer (CEO) is thought of as the highest ranking officer in a company while the president ... Read Answer >>
  4. What is a staggered board?

    A staggered board of directors (also known as a classified board) is a board that is made up of different classes of directors. ... Read Answer >>
  5. In what context is a corporation considered to be an individual entity?

    Read about when a corporation is considered an individual entity, when it is not and why corporations are not considered ... Read Answer >>
  6. What is the history of corporations in America?

    Read a short history of the American corporation, from the first industrial producers to the period of American business ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center