Corporate governance refers to the systems and rules by which a company is directed and controlled. General Counsel supports governance by helping define and document decision-making processes, preparing board resolutions, and ensuring compliance with bylaws and state laws. This involves formalizing how key business decisions are made - a critical foundation for growth and investment.
Without proper governance structures in place, startups can face disputes over authority, unclear decision rights, and investor concerns about oversight. GC helps draft and maintain documents like board consents, shareholder approvals, and governance policies that keep authority and accountability clear.
FAQs
Q: What isa board resolution?
A: A board resolution is an official written record of decisions made by the board of directors - for example, approving a fundraising round or issuing equity. They’re required to satisfy legal formalities and protect the company from future disputes.
Q: Do all startups need a board?
A: All corporations require a board of directors, even if it’s just one director. However, other forms of startup entities (such as an LLC) may be formed without a formal board. As you raise capital and bring on investors, establishing aboard becomes essential for governance, accountability, and legal compliance.
Frequently Asked Questions
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