Corporate Records Handbook, The: Meetings, Minutes & Resolutions

Web Resources......Page 0
Table of Contents......Page 9
Your Legal Companion for The Corporate Records Handbook......Page 17
1. Corporate Documents and Laws......Page 19
Organize Your Corporate Records......Page 20
Looking Up the Law Yourself......Page 24
2. When to Use Corporate Meetings, Minutes, and Written Consents......Page 27
Three Ways to Make and Document Formal Corporate Decisions......Page 28
Questions and Answers About Corporate Meetings, Minutes, and Written Consents......Page 29
3. Preliminary Steps Before Holding a Corporate Meetings......Page 37
Steps to Hold a Meeting......Page 38
4. How to Hold a Meeting of Your Directors or Shareholders......Page 61
Step 3. Prepare Corporate Resolutions in Advance......Page 62
Step 5. Hold a Meeting in Cyberspace If You Have the Equipment and Know-How......Page 63
Step 7. Chairperson Calls the Meeting to Order......Page 65
Step 8. Secretary Determines Whether a Quorum Is Present......Page 66
Step 10. Officers and Committees Present Reports......Page 68
Step 12. Introduce and Discuss Specific Proposals......Page 70
Step 13. Take the Votes of Directors or Shareholders......Page 72
Step 14. Adjourn the Meeting......Page 75
5. How to Prepare Written Minutes of Shareholders’ Meetings......Page 77
Preparing Minutes of Annual Shareholders’ Meetings......Page 78
Preparing Minutes of Special Shareholders’ Meetings......Page 88
6. How to Prepare Written Minutes of Directors’ Meetings......Page 97
Choosing the Correct Minutes Form for a Directors’ Meeting......Page 99
Preparing Minutes of Annual Directors’ Meetings......Page 100
Preparing Minutes of Special Directors’ Meetings......Page 108
7. How to Hold a Paper Meeting of Your Directors or Shareholders......Page 115
Decide Whether to Hold a Paper Meeting......Page 116
How to Prepare Minutes of Paper Meetings......Page 118
8. How to Take Action by Written Consent Without a Meeting......Page 125
Step 1. Check Bylaws for Your State’s Written Consent Rules......Page 126
Step 2. Prepare Written Consent Form......Page 127
Step 3. Place Signed Consent Forms in Your Corporate Records Book......Page 130
9. Standard Corporate Business Resolutions......Page 131
When to Use the Resolutions in this Chapter......Page 132
Bank Account Resolutions......Page 133
Resolution to Adopt Assumed or Fictitious Business Name......Page 139
Resolution to Approve Contract......Page 141
Real Property Resolutions......Page 142
Authorization or Ratification of Employee’s Authority......Page 145
Certification, Affidavit, or Acknowledgment of Corporate Decision Making or Document......Page 150
10. Corporate Tax Resolutions......Page 153
S Corporation Tax Election......Page 154
Accumulation of Earnings......Page 160
Section 1244 Stock Plan......Page 162
Resolution for Approval of Independent Audit......Page 165
Selection of Corporate Tax Year......Page 166
Resolution for Payment and Deduction of Corporate Organizational Costs......Page 168
11. Resolutions to Amend Corporate Articles and Bylaws......Page 171
Amending Articles of Incorporation......Page 173
Amending Corporate Bylaws......Page 182
12. Corporate Hiring and Appointment Resolutions......Page 185
Hiring and Paying Corporate Employees......Page 187
Using Independent Contractors......Page 191
Appointing and Paying Corporate Officers......Page 193
Compensation for Attending Corporate Meetings......Page 195
Approval of Indemnification for Corporate Directors, Officers, and Employees......Page 197
13. Director Conflict of Interest Resolutions......Page 201
Approval of Business Between the Corporation and Its Directors......Page 202
Resolutions for Approval of Director Conflict of Interest Transactions......Page 205
Resolutions for Shareholder Approval......Page 208
14. Resolutions for Loans to the Corporation......Page 213
When to Use Corporate Loan Resolutions......Page 214
Loans to the Corporation by Banks and Other Lending Institutions......Page 216
Loans to the Corporation by Shareholders and Other Insiders......Page 223
Promissory Notes Overview......Page 229
Sample Promissory Note Forms......Page 232
15. Resolutions for Loans by the Corporation to Insiders......Page 247
Insider Loan Restrictions Under State Law......Page 249
Tax Considerations and Consequences of Insider Loans......Page 251
Resolution for Board and Shareholder Approval of Corporate Loan to Insider......Page 254
Supporting Documentation—Promissory Notes......Page 256
Release of Promissory Note......Page 270
16. Employee Fringe Benefits and Business Expense Reimbursement Resolutions......Page 271
Introduction to Employee Fringe Benefits......Page 273
Group Health, Accident, and Disability Insurance......Page 274
Self-Insured Medical Reimbursement Plans......Page 276
Resolution Authorizing Group Term Life Insurance......Page 279
Authorization of Death Benefit Contract......Page 280
Payment of Employee Automobile Expenses......Page 282
Payment of Meals and Lodging......Page 285
Resolution Authorizing Business Expenses With Corporate Credit or Charge Card......Page 287
Reimbursement of Employee Business Expenses......Page 289
Resolution Approving Stock Bonus or Stock Option Plan......Page 296
17. Corporate Retirement Plan Resolutions......Page 297
How to Use This Chapter......Page 299
Overview of Corporate Retirement Plans......Page 300
Resolutions to Adopt Retirement Plans......Page 308
18. Stock Dividend Resolutions......Page 313
Stock Dividend Rules......Page 314
Stock Dividend Resolutions......Page 317
19. Stock Issuance Resolutions......Page 325
Legal and Tax Issues Affecting Stock Issuance......Page 326
Stock Issuance Resolutions......Page 328
20. Lawyers, Tax Specialists, and Legal Research......Page 345
How to Find the Right Lawyer......Page 346
Finding the Right Tax Adviser......Page 349
How to Do Your Own Legal Research......Page 351
Appendix A: How to Use the CD-ROM......Page 355
Using the Word Processing Files to Create Documents......Page 356
List of Files Included on the Forms CD......Page 359
Appendix B: Corporate Contact Information......Page 363
Appendix C: Corporate Minutes Forms......Page 379
Meeting Summary Sheet......Page 383
Call of Meeting......Page 385
Meeting Participant List......Page 387
Notice of Meeting......Page 389
Acknowledgment of Receipt of Notice of Meeting......Page 391
Proxy......Page 393
Certification of Mailing......Page 395
Minutes of the Annual Meeting of Shareholders......Page 397
Minutes of Special Meeting of Shareholders......Page 403
Minutes of the Annual Meeting of Directors......Page 409
Minutes of Special Meeting of Directors......Page 415
Waiver of Notice of Meeting......Page 419
Approval of Corporate Minutes......Page 421
Cover Letter for Approval of Minutes of Paper Meeting......Page 423
Written Consent to Action Without Meeting......Page 425
Authorization of Treasurer to Open and Use Accounts......Page 427
Authorization of Treasurer to Open and Use Specific Corporate Account(s)......Page 429
Authorization of Corporate Account and Designation of Authorized Signers......Page 431
Authorization of Rental of Safe Deposit Box......Page 433
Adoption of Assumed Name......Page 435
Board Approval of Proposed Contract......Page 437
Approval of Lease......Page 439
Purchase of Real Property......Page 441
Authorization of Sale of Real Property......Page 443
Delegation of Authority to Corporate Employee......Page 445
Director Ratification of Employee’s Acts......Page 447
Board Ratification of Contract......Page 449
Rescission of Authority of Employee......Page 451
Shareholder Ratification of Decisions or Acts......Page 453
Certification of Board or Shareholder Action......Page 455
Affidavit of Corporate Decision Making......Page 457
Acknowledgment......Page 459
S Corporation Tax Election......Page 461
S Corporation Shareholders’ Agreement......Page 463
Accumulation of Corporate Earnings......Page 465
Qualification of Shares Under Internal Revenue Code Section 1244......Page 467
Approval of Independent Audit of Corporate Financial Records......Page 469
Payment and Deduction of Organizational Expenses......Page 473
Approval of Amendment to Articles of Incorporation......Page 475
Approval of Restatement of Articles of Incorporation......Page 477
Amendment of Articles Form......Page 479
Approval of Amendment of Bylaws......Page 481
Approval of Hiring of Corporate Employee......Page 483
Approval of Bonuses and Salary Increases......Page 485
Shareholder Ratification of Employee Pay......Page 487
Approval of Independent Contractor Services......Page 489
Appointment of Corporate Officers......Page 491
Authorization of Payment for Attending Meetings......Page 493
Annual Director or Officer Stipend for Attendance at Meetings......Page 495
No Compensation for Attending Corporate Meetings......Page 497
Indemnification and Insurance for Directors and Officers......Page 499
Board Approval of Transaction Benefiting a Director......Page 501
Directors’ Written Consent to Transaction Benefiting a Director......Page 503
Shareholder Approval of Transaction Benefiting a Director......Page 505
Shareholder Written Consent to Transaction Involving a Director......Page 507
Authorization of Loan at Specific Terms......Page 509
Authorization of Maximum Loan on General Terms......Page 511
Unlimited Authorization of Loans for Business Needs......Page 513
Authorization of Line of Credit......Page 515
Authorization of Line of Credit With Cap on Each Transaction......Page 517
Authorization of Loan Terms Secured by Corporate Property......Page 519
Resolution Approving Loan to Corporation......Page 521
Promissory Note: Installment Payments of Principal and Interest (Amortized Loan)......Page 523
Promissory Note: Installment Payments of Principal and Interest (Amortized Loan) Secured by Corporate Property......Page 525
Promissory Note: Installment Payments of Principal and Interest (Amortized Loan) with Balloon Payment......Page 527
Promissory Note: Periodic Payments of Interest with Lump Sum Principal Payment......Page 529
Promissory Note: Lump Sum Payment of Principal and Interest at Specified Date......Page 531
Promissory Note: Lump Sum Payment of Principal and Interest on Demand by Noteholder......Page 533
Promissory Note: Variable Schedule of Payments of Principal and Interest......Page 535
Approval of Corporate Loan to Insider......Page 537
Promissory Note: Installment Payments of Principal and Interest (Amortized Loan)......Page 539
Promissory Note: Installment Payments of Principal and Interest (Amortized Loan) Secured by Property......Page 541
Promissory Note: Installment Payments of Principal and Interest (Amortized Loan) With Balloon Payment......Page 543
Promissory Note: Periodic Payments of Interest With Lump Sum Principal Payment......Page 545
Promissory Note: Lump Sum Payment of Principal and Interest at Specified Date......Page 547
Promissory Note: Lump Sum Payment of Principal and Interest on Demand by Noteholder......Page 549
Promissory Note: Variable Schedule of Payments of Principal and Interest......Page 551
Release of Promissory Note......Page 553
Authorization of Group Health, Accident, or Disability Insurance for Employees......Page 555
Adoption of Self-Insured Medical Reimbursement Plan......Page 557
Purchase of Group Term Life Insurance......Page 559
Authorization of Employee Death Benefit......Page 561
Agreement Regarding Death Benefits......Page 563
Purchase or Lease of Company Car......Page 565
Authorization of Payment of Standard Mileage Allowance to Employees......Page 567
Business Meal Expense Allotment for Employees......Page 569
On-Premises Meals and Lodging to Employees......Page 571
Authorization of Corporate Credit and Charge Cards for Employees......Page 573
Reimbursement of Actual Travel and Entertainment Expenses to Employees Under Accountable Reimbursement Plan......Page 575
Reimbursement of Actual Travel and Entertainment Expenses to Employees Under Nonaccountable Reimbursement Plan......Page 577
Authorization of Per Diem Travel Allowance for Employees......Page 579
Board Approval of Stock Bonus or Stock Option Plan......Page 581
Board of Directors’ Adoption of Retirement Plan......Page 583
Board of Directors’ Adoption of Profit-Sharing Plan......Page 585
Shareholder Ratification of Retirement Plan......Page 587
Declaration of Cash Dividend......Page 589
Authorization of Cash Dividend Payable in Installments......Page 591
Declaration of Year-End Dividend......Page 593
Declaration of Regular and Extra Dividend......Page 595
Declaration of Accumulated Dividend to Preferred Shareholders......Page 597
Authorization of Property Dividend to Shareholders......Page 599
Approval of the Issuance of Shares......Page 601
Sale and Issuance of Shares for Property......Page 603
Sale and Issuance of Shares for Indebtedness Canceled......Page 605
Sale and Issuance of Shares for Services......Page 607
Sale and Issuance of Capital Stock for Assets and Liabilities of a Business......Page 609
Bill of Sale and Agreement......Page 611
Issuance of Shares in Exchange for Assignment of Trademark, Service Mark, Patent, or Copyright......Page 613
Assignment......Page 615
Issuance of Shares in Return for Cash and Promissory Note......Page 617
Index......Page 619