District of Columbia Resolution of Directors of a Close Corporation Authorizing Redemption of Stock

• Category: Corporations - Minutes and Resolutions
• State: Multi-State
• Control #: US-02533BG
• Format: Word; Rich Text

Description

Modern corporation statutes give corporations a wide range of powers. Generally, a corporation may purchase its own stock if it is solvent. A District of Columbia Resolution of Directors of a Close Corporation Authorizing Redemption of Stock is a legal document that allows the board of directors of a close corporation in the District of Columbia to authorize the redemption of stock held by shareholders. This resolution is important in cases where the corporation wishes to repurchase or redeem shares from certain shareholders. The resolution typically includes key components such as the date, the name of the corporation, the names of the directors present and voting, and the specific authorization to redeem shares of stock. It outlines the number and type of shares to be redeemed, as well as the purchase price or method of determining the redemption price. It is crucial for directors of a close corporation to hold a meeting and pass a resolution to authorize the redemption of stock, as it ensures legal compliance and protects the interests of both the corporation and its shareholders. The resolution should be in line with the corporation's bylaws and articles of incorporation, as well as any relevant state laws. Different types of District of Columbia Resolutions of Directors of a Close Corporation Authorizing Redemption of Stock may include: 1. Full Redemption: This type of resolution authorizes the complete redemption of shares held by a shareholder. The corporation repurchases all the shares owned by the shareholder in exchange for the agreed-upon redemption price. 2. Partial Redemption: This resolution allows the corporation to redeem only a portion of the shares held by a shareholder. The shareholder retains ownership of the remaining shares while selling a specific number back to the corporation. 3. Voluntary Redemption: This type of resolution is initiated at the request of the shareholder. It grants permission to the corporation to redeem the shareholder's shares upon their request, typically due to personal reasons or a desire to exit the corporation. 4. Compulsory Redemption: This resolution is invoked under specific circumstances outlined in the corporation's bylaws or articles of incorporation. It allows the corporation to redeem shares from a shareholder who violates certain contractual obligations or conditions. 5. Conditional Redemption: This resolution authorizes the redemption of shares only if certain conditions are met. These conditions can include a specific timeframe, the achievement of certain financial milestones, or the occurrence of specific events. In conclusion, a District of Columbia Resolution of Directors of a Close Corporation Authorizing Redemption of Stock is a vital legal document that enables a close corporation to repurchase shares from its shareholders. The specific type of resolution depends on the circumstances and objectives of the corporation and can range from full redemption to conditional redemption. It is essential for corporations to follow the proper legal procedures and ensure compliance with state laws, bylaws, and articles of incorporation when executing such resolutions.

A District of Columbia Resolution of Directors of a Close Corporation Authorizing Redemption of Stock is a legal document that allows the board of directors of a close corporation in the District of Columbia to authorize the redemption of stock held by shareholders. This resolution is important in cases where the corporation wishes to repurchase or redeem shares from certain shareholders. The resolution typically includes key components such as the date, the name of the corporation, the names of the directors present and voting, and the specific authorization to redeem shares of stock. It outlines the number and type of shares to be redeemed, as well as the purchase price or method of determining the redemption price. It is crucial for directors of a close corporation to hold a meeting and pass a resolution to authorize the redemption of stock, as it ensures legal compliance and protects the interests of both the corporation and its shareholders. The resolution should be in line with the corporation's bylaws and articles of incorporation, as well as any relevant state laws. Different types of District of Columbia Resolutions of Directors of a Close Corporation Authorizing Redemption of Stock may include: 1. Full Redemption: This type of resolution authorizes the complete redemption of shares held by a shareholder. The corporation repurchases all the shares owned by the shareholder in exchange for the agreed-upon redemption price. 2. Partial Redemption: This resolution allows the corporation to redeem only a portion of the shares held by a shareholder. The shareholder retains ownership of the remaining shares while selling a specific number back to the corporation. 3. Voluntary Redemption: This type of resolution is initiated at the request of the shareholder. It grants permission to the corporation to redeem the shareholder's shares upon their request, typically due to personal reasons or a desire to exit the corporation. 4. Compulsory Redemption: This resolution is invoked under specific circumstances outlined in the corporation's bylaws or articles of incorporation. It allows the corporation to redeem shares from a shareholder who violates certain contractual obligations or conditions. 5. Conditional Redemption: This resolution authorizes the redemption of shares only if certain conditions are met. These conditions can include a specific timeframe, the achievement of certain financial milestones, or the occurrence of specific events. In conclusion, a District of Columbia Resolution of Directors of a Close Corporation Authorizing Redemption of Stock is a vital legal document that enables a close corporation to repurchase shares from its shareholders. The specific type of resolution depends on the circumstances and objectives of the corporation and can range from full redemption to conditional redemption. It is essential for corporations to follow the proper legal procedures and ensure compliance with state laws, bylaws, and articles of incorporation when executing such resolutions.