Are you a business owner or executive looking to lease office space for your company? If so, you may need to draft and pass a board resolution to authorize the lease agreement. Here’s what you need to know about this important step in the leasing process.
What is a Board Resolution?
A board resolution is a formal document that outlines a decision or action taken by a company’s board of directors or governing body. The resolution is typically recorded in the minutes of the board meeting and serves as an official record of the decision made.
Why Do You Need a Board Resolution for a Lease Agreement?
If you are leasing office space for your company, you may be required by the landlord or leasing agent to provide a board resolution authorizing the agreement. This is because the lease agreement is a legal document that binds your company to certain terms and obligations, and the landlord wants to ensure that the decision to enter into the lease was made by the appropriate parties with the proper authority.
What Should Be Included in the Board Resolution?
The board resolution should clearly state the decision to authorize the lease agreement and provide details about the property being leased, such as the location and square footage. It should also state the term of the lease, the monthly rent, and any additional fees or obligations that the company is taking on as part of the agreement.
In addition, the board resolution should identify the individuals who are authorized to sign the lease agreement on behalf of the company. This may include the company’s CEO, president, or other designated representative.
Finally, the board resolution should be signed by all members of the board who were present at the meeting and voted in favor of the resolution.
Conclusion
If you are in the process of leasing office space for your company, it’s important to understand the role that a board resolution plays in the process. By authorizing the lease agreement through a board resolution, you can ensure that the decision to lease the property was made by the appropriate parties with the proper authority. With a clear understanding of the requirements for a board resolution, you can move forward confidently with your leasing agreement.