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A corporate resolution is a formal document that records decisions and actions approved by a company's board of directors or members of an LLC. These resolutions are necessary for various business transactions and help establish the legitimacy of actions taken on behalf of the corporation. It's essential to maintain all records, resolutions, and meeting minutes in a corporate minute book for long-term preservation, which can be important if the board's actions are challenged. Not every board action requires a resolution, only those that significantly affect the company's direction, finances, or structure. A corporate resolution is a legal document that must adhere to a standard format.