Directors Resolution Authorizing Annual Dividend – Kit

Bahman Eslamboly

Form reviewed by Bahman Eslamboly, Attorney at FindLegalForms

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Directors resolutions are records of official acts of the board of directors. This kit provides the tools for drafting these resolutions, and the guidelines for how and when they should be used by your corporation’s board of directors.

In certain cases, your board may wish to take action without the process of meeting in person, through the use of a written consent resolution. This kit also includes instructions for authorizing the corporation to issue an annual dividend using a consent resolution.
This attorney-prepared packet contains:
  1. Directors Resolutions Checklist
  2. Instructions and Sample for Consent Resolutions
  3. Board of Directors Resolution (Authorizing Issuance of Annual Dividend) form
State Law Compliance: Designed for use in all states

Directors Resolution Authorizing Annual Dividend – Kit

Product Details

Product Directors Resolution Authorizing Annual Dividend – Kit
Country United States
Pages 7
Dimensions Designed for Letter Size (8.5" x 11")
Printer compatibility Designed to print on all ink-jet and laser printers
Editable Yes (.doc, .wpd and .rtf)
Format Microsoft Word
Adobe PDF
WordPerfect
Rich Text Format
Platform Windows Compatible
Mac Compatible
Linux Compatible
Availability In Stock. Instant Download
Usage Unlimited number of prints
Category Board of Directors
Product number #27161
Download time Less than 1 minute (approx.)
Document Access Via secret online address
Email with download links
Email with attachment upon request
Refund Policy 60 days, no-questions asked, 100% money back guarantee

Frequently Asked Questions

A directors resolution is a formal document that records decisions made by the board of directors of a corporation. It serves as an official record of actions taken and is essential for corporate governance.

A written consent resolution is appropriate when the board of directors cannot meet in person but needs to make timely decisions. It allows directors to approve actions, such as issuing dividends, without a formal meeting.

To ensure compliance, it's important to review your state's corporate laws regarding dividend issuance and board resolutions. This kit is designed for use in all states, but local laws may have specific requirements.

While this kit is specifically tailored for authorizing annual dividends, the templates and guidelines can be adapted for other corporate actions requiring board resolutions.

If your corporation has never issued dividends, this kit provides a comprehensive guide to help you navigate the process. It includes templates and instructions to establish a clear dividend policy.

Is This Form Right For You?

Use This Form If:

  • Corporations may require a formal resolution to authorize the distribution of dividends to shareholders. This ensures compliance with corporate governance standards and provides a clear record of the board's decision-making process.
  • In situations where a board of directors cannot convene in person, a written consent resolution allows for the approval of an annual dividend without a formal meeting. This method is particularly useful for timely decision-making in fast-paced business environments.
  • For newly established corporations, drafting a directors resolution for the first annual dividend is essential to set a precedent for future distributions. This kit provides the necessary templates and guidance to ensure proper documentation.
  • When a corporation's financial situation changes, the board may need to reassess its dividend policy. Utilizing this kit allows the board to draft a resolution that reflects current financial realities while adhering to legal requirements.
  • In cases where shareholders have expressed interest in receiving dividends, the board must act to authorize these payments. This kit equips directors with the tools to formalize their decision and communicate it effectively to shareholders.

Do Not Use If:

  • This form is not appropriate if the corporation is not in a financial position to issue dividends. If the company is facing financial difficulties, it may be better to defer dividend payments until the situation improves.
  • In cases where the board of directors is not properly constituted or lacks the authority to issue dividends, using this form would be inappropriate. Ensure that all directors are in place and have the authority to make such decisions.
  • If the corporation has not yet established a dividend policy or has not communicated its intentions to shareholders, this kit should not be used. Clear communication and policy establishment are crucial before issuing dividends.
  • When the board of directors is divided on the decision to issue dividends, it may be wise to hold a formal meeting instead of using a written consent resolution. This ensures that all opinions are heard and considered.
  • If the corporation is in the process of dissolution or liquidation, this form should not be used as dividends typically cannot be issued during these processes.

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