If your organization is looking to lease a property, it’s important that the proper steps are followed to ensure that the lease agreement is valid and enforceable. One of the key steps in this process is obtaining board approval for the lease agreement.
A board resolution is a formal document that outlines the decision made by the board of directors or trustees of an organization. It’s used to record the decisions made at a meeting and is often required for legal and financial transactions.
When it comes to leasing a property, a board resolution is necessary to demonstrate that the board has approved the lease agreement. This is important because it can provide protection for the organization in case of disputes or legal issues arising from the lease.
Here’s what you need to know about creating a board resolution for the approval of a lease agreement:
1. Review the lease agreement
Before creating a board resolution, it’s important to review the lease agreement thoroughly. This will help ensure that all relevant information is included in the resolution and that the board fully understands the terms of the lease.
2. Draft the resolution
The board resolution should include the following:
– A statement that the board has reviewed and approved the lease agreement.
– The date of the board meeting at which the resolution was passed.
– The names of the board members who were present at the meeting.
– A summary of the terms of the lease, including the rent amount, security deposit, lease term, and any other relevant details.
– A statement that the organization has the necessary authority to enter into the lease agreement.
– Signatures of the board members who approved the resolution.
3. Vote on the resolution
The board members should vote on the resolution at a meeting. A majority vote is typically required for the resolution to pass.
4. File the resolution
Once the resolution has been passed, it should be filed with the organization’s records. This will help ensure that the organization has a record of the board’s approval of the lease agreement.
By following these steps, organizations can ensure that they have a valid and enforceable lease agreement. A board resolution provides a clear record of the board’s approval, which can be important in case of legal disputes or other issues.