Document background
A Resolution By Shareholders is a crucial corporate governance document used in Canadian business operations to formally document decisions made by company shareholders. This document is typically required when shareholders need to approve significant corporate actions such as mergers, acquisitions, bylaw changes, appointment or removal of directors, issuance of new shares, or major asset sales. The resolution must comply with the Canada Business Corporations Act or relevant provincial legislation, depending on where the company is incorporated. It can be passed either at a formal shareholders' meeting or through written consent (unanimous or majority, as required by law). The document serves as official evidence of shareholder approval and becomes part of the company's corporate records, often needed for regulatory compliance, banking purposes, or future corporate transactions.
