Running a business isn`t all sunshine and rainbows, and there comes a time when you may be forced to terminate an agreement with a client or partner. Whatever the reason may be, it`s essential to have a clear and concise termination plan in place to outline the proceedings and protect your organization from legal repercussions.
One of the most crucial steps in terminating an agreement is drafting a sample board resolution. This document is a formal declaration by the board of directors on any decisions made at a board meeting, including the termination of an agreement.
To help you navigate through the process of terminating an agreement, we`ve compiled a sample board resolution that you can use as a guideline:
[Company Name] Board of Directors resolution for termination of [Agreement Name]
WHEREAS, [Company Name] entered into an agreement with [Client/Partner Name] on [Date of Agreement], and
WHEREAS, [Client/Partner Name] has failed to fulfill its obligations as outlined in the agreement, and
WHEREAS, [Company Name] has provided [Client/Partner Name] with notice of the breach and an opportunity to remedy the situation, and
WHEREAS, [Client/Partner Name] has not remedied the situation within the agreed-upon time frame,
NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of [Company Name] hereby terminates the agreement with [Client/Partner Name] effective immediately.
BE IT FURTHER RESOLVED, that [Company Name] shall take all necessary actions to enforce any remedies available under the agreement, including pursuing legal action if necessary.
BE IT FURTHER RESOLVED, that the CEO or authorized officer of [Company Name] is hereby authorized and directed to take all necessary steps to notify [Client/Partner Name] of this board resolution.
BE IT FURTHER RESOLVED, that a copy of this board resolution be placed in the official records of the Corporation.
The above resolution provides a clear and concise outline of the termination proceedings, including the reasons for terminating the agreement, the steps taken to remedy the situation, and the actions to be taken after the agreement termination.
It`s essential to note that the sample board resolution may vary depending on the nature of the agreement, and it`s always advisable to seek legal advice before terminating an agreement to ensure that you`re following the proper legal protocols.
In conclusion, having a sample board resolution in place is crucial when it comes to terminating an agreement with a client or partner. It ensures that the process is legally sound, protects your organization from legal repercussions, and provides clarity to all parties involved.