Directors Resolution Authorizing Stock Dividend – Kit

Bahman Eslamboly

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This Directors Resolution Authorizing Stock Dividend effectively authorizes a stock dividend be paid due to a surplus of undistributed funds. This resolution was agreed to at a formal board meeting and sets forth the date and time of the meeting and that a quorum was present. Also included is a Consent Resolution authorizing the dividend which was authorized without a formal meeting. This consent resolution must be signed by all members of the board of directors. These resolutions when signed become a part of the official records of the corporation.

This Directors Resolution Authorizing Stock Dividend includes:
  • Checklist: Detailed checklist setting forth resolutions which should be approved at an official board meeting;
  • Dividend Resolution: Resolution which sets forth that the board approved a stock dividend at a formal board meeting;
  • Notes/Instructions: Notes regarding resolutions which are made without the benefit of a formal board of directors meeting;
  • Consent Resolution: Consent resolution which spells out that a dividend will be paid. This resolution must be signed by all members of the board.

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State Law Compliance: This form complies with the laws of all states

Directors Resolution Authorizing Stock Dividend – Kit

Product Details

Product Directors Resolution Authorizing Stock 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 #27164
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 Authorizing Stock Dividend is a formal document that records the board's decision to distribute a stock dividend to shareholders. It includes details about the meeting where the decision was made and ensures compliance with corporate governance standards.

A consent resolution allows the board of directors to approve a dividend without holding a formal meeting. This is useful for situations where immediate action is required, and it must be signed by all board members to be valid.

Once signed, both the Directors Resolution and the Consent Resolution become part of the official corporate records. This documentation is crucial for maintaining transparency and accountability within the corporation.

If a quorum is not present, the board cannot legally approve the stock dividend during the meeting. This may require rescheduling the meeting or obtaining consent from board members outside of the formal meeting setting.

Yes, the Directors Resolution Authorizing Stock Dividend is designed to comply with the laws of all states, ensuring that the process of declaring dividends adheres to legal requirements across jurisdictions.

Is This Form Right For You?

Use This Form If:

  • Individuals who serve on a corporate board may need this resolution to formally document the decision to issue a stock dividend, ensuring compliance with corporate governance standards. This is particularly important for maintaining accurate corporate records and fulfilling fiduciary duties.
  • Situations requiring the distribution of surplus funds to shareholders can benefit from this resolution, as it provides a clear and legally binding method to authorize the dividend. This helps prevent disputes among board members and ensures transparency in financial decisions.
  • For those looking to streamline the process of declaring dividends, this kit offers a comprehensive checklist and consent resolution that can be used without a formal meeting. This is advantageous for boards that need to act quickly in response to financial conditions.
  • Companies undergoing financial growth may find this resolution essential for communicating dividend decisions to shareholders. By documenting the approval process, the board can enhance shareholder confidence and demonstrate responsible financial management.
  • In instances where a board of directors needs to authorize a dividend without convening a formal meeting, this consent resolution provides a practical solution. It allows for swift decision-making while still adhering to legal requirements for corporate governance.

Do Not Use If:

  • This form is not appropriate for companies that are not legally structured as corporations, as it is specifically designed for corporate governance. Sole proprietorships or partnerships do not require such resolutions.
  • In situations where the board has not reached a consensus on the dividend, using this resolution could lead to legal disputes. It is essential that all board members agree on the decision before proceeding.
  • If the company is facing financial difficulties that prohibit the distribution of dividends, this form should not be used. It is important to assess the financial health of the corporation before declaring any dividends.
  • This resolution should not be used if there are ongoing legal disputes among board members or shareholders that could affect the validity of the dividend declaration. Legal counsel should be sought in such cases.
  • In cases where the company has not maintained proper corporate records or meeting minutes, using this resolution may not be advisable. Accurate documentation is crucial for the resolution to hold legal weight.

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