Actions by Corporate Board

Boards of directors typically take action through meetings where they issue resolutions recorded in minutes. However, in closely held corporations, actions can also be taken through unanimous consents, which are agreements signed by shareholders or directors outside of meetings. These actions are later recorded to formalize them. Both meetings and written consents are common methods for directors to make decisions.

What is the primary method by which boards of directors take action?

• Via social media platforms

• By holding meetings and issuing resolutions

• Through informal discussions

• Through email communication

In closely held corporations, what is a common alternative to holding meetings for decision-making?

• Teleconferences

• Consents

• Board retreats

• Public announcements

What is typically required for consents to be valid?

• Majority approval

• A formal ceremony

• Unanimous agreement

• Approval from the CEO

How are actions taken through consents typically recorded?

• In a private journal

• During a subsequent meeting

• Through a press release

• In a public forum

What are the two general methods by which directors make decisions?

• By voting or drawing lots

• Through public voting or surveys

• Through meetings or written consents

• Via phone calls or emails