United States · New York

Directors' resolutions under New York BCL § 708

How a New York corporation's board passes resolutions, by meeting or by unanimous written consent under BCL § 708, with conflict-of-interest rules under § 713.

Governing statute
New York Business Corporation Law, N.Y. BCL § 101 et seq.
§ 708Unanimous written consent of directors
§ 707Telephone meeting of directors
§ 713Conflict-of-interest transactions
At a glance
  • NY BCL § 708 permits unanimous written consent of directors
  • Every director must sign for the consent to be effective
  • Telephone-conference participation permitted under § 707
  • Conflict-of-interest transactions governed by § 713
  • New York requires extensive recordkeeping under § 624

NY BCL § 708 unanimous written consent

New York permits the board to act by unanimous written consent in lieu of a meeting. The mechanism is substantively identical to Delaware § 141(f). Every director entitled to vote must sign. The consent is effective on the date of the last signature.

Section 713 conflict-of-interest transactions

Section 713 permits interested-director transactions where the interest is disclosed and the transaction is approved by majority disinterested directors, shareholder ratification, or by being demonstrably fair to the corporation. The procedural safeguards mirror Delaware § 144 closely.

Section 624 records requirements

New York imposes more prescriptive recordkeeping requirements than Delaware. Section 624 requires the corporation to keep minutes of all meetings, complete and correct books and records of account, and a record of shareholders, directors, and officers. Resolutions are part of this required record.

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