District of Columbia Minutes of Special Meeting of the Board of Directors of (Name of Corporation) to Adopt Stock Ownership Plan under Section 1244 of the Internal Revenue Code

• Category: Corporations - Minutes and Resolutions
• State: Multi-State
• Control #: US-1077BG
• Format: Word; Rich Text

Description

Section 1244 of the Internal Revenue Code is the small business stock provision enacted to allow shareholders of domestic small business corporations to deduct a loss on the disposal of such stock as an ordinary loss rather than as a capital loss, which is limited to only $3,000 annually. Normally, stock is treated as a capital asset and if disposed of at a loss, the loss is deducted as a capital loss. The general rule for net capital losses (losses that exceed gains) is that they are subject to an annual deduction limit of only $3,000. Any excess over $3,000 must be carried over to the next year. A loss on Section 1244 stock is deductible as an ordinary loss up to $50,000 ($100,000 on a joint return, even if only one spouse has a Section 1244 loss). Title: District of Columbia Minutes of Special Meeting of the Board of Directors of (Name of Corporation) to Adopt Stock Ownership Plan under Section 1244 of the Internal Revenue Code Keywords: District of Columbia, minutes of meeting, special meeting, board of directors, corporation, stock ownership plan, Section 1244, Internal Revenue Code Introduction: In accordance with the regulations set forth by the District of Columbia, this document presents a detailed description of the Minutes of a Special Meeting of the Board of Directors of (Name of Corporation) held to adopt a Stock Ownership Plan under Section 1244 of the Internal Revenue Code. This meeting serves as a crucial step in implementing a strategic plan to ensure enhanced employee motivation, ownership, and the possibility of potential tax benefits. Types of District of Columbia Minutes of Special Meeting to Adopt Stock Ownership Plan: 1. Regular District of Columbia Minutes of Special Meeting of the Board of Directors 2. Emergency District of Columbia Minutes of Special Meeting of the Board of Directors 3. Virtual District of Columbia Minutes of Special Meeting of the Board of Directors 4. Adjourned District of Columbia Minutes of Special Meeting of the Board of Directors Detailed Description: I. Meeting Date, Time, and Location: The Special Meeting of the Board of Directors of (Name of Corporation) to Adopt Stock Ownership Plan under Section 1244 of the Internal Revenue Code was held on [Date] at [Time] in [Location]. The meeting was called to order by the (Title of the Chairman/President) at exactly [Time]. II. Attendance: The following directors were present at the meeting: 1. (Name of Director) 2. (Name of Director) 3. (Name of Director) 4. (Name of Director) ... [Include all directors and their titles] III. Quorum Determination: The Chairman/President verified that a quorum was present, constituting a majority of the directors. The meeting, therefore, proceeded accordingly. IV. Call to Order and Purpose: The Chairman/President formally called the meeting to order and stated the purpose, which was to discuss and adopt a Stock Ownership Plan as authorized by Section 1244 of the Internal Revenue Code. V. Presentation and Discussion of Stock Ownership Plan: The Board of Directors was presented with a comprehensive plan, outlining the details, objectives, and benefits of implementing a stock ownership plan. Clarifications and discussions regarding the plan were facilitated to address any concerns or queries raised by the directors. VI. Voting and Adoption: Following the presentation and discussion, a motion was made to adopt the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. The motion was seconded by (Director's Name) and then put to a vote. The vote resulted in [number of votes in favor]/[total votes cast] in favor of adopting the plan. VII. Resolutions and Approval: Upon the successful adoption of the Stock Ownership Plan, the following resolutions were approved by the Board of Directors: 1. Approval of the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. 2. Designation of (Name of Official) as the administrator of the plan. 3. Authorization to implement the necessary administrative processes and actions for the successful execution of the plan. VIII. Adjournment: With no further business to discuss, the Chairman/President announced the closing of the Special Meeting at [Time]. The minutes of the meeting were recorded by (Secretary's Name). Conclusion: These detailed Minutes of the Special Meeting of the Board of Directors highlight the adoption of a Stock Ownership Plan under Section 1244 of the Internal Revenue Code by (Name of Corporation). By implementing this plan, the company aims to foster employee engagement, motivation, and potential tax benefits. These minutes ensure the transparent documentation of the meeting's proceedings, resolutions, and approvals in accordance with the regulations of the District of Columbia.

Title: District of Columbia Minutes of Special Meeting of the Board of Directors of (Name of Corporation) to Adopt Stock Ownership Plan under Section 1244 of the Internal Revenue Code Keywords: District of Columbia, minutes of meeting, special meeting, board of directors, corporation, stock ownership plan, Section 1244, Internal Revenue Code Introduction: In accordance with the regulations set forth by the District of Columbia, this document presents a detailed description of the Minutes of a Special Meeting of the Board of Directors of (Name of Corporation) held to adopt a Stock Ownership Plan under Section 1244 of the Internal Revenue Code. This meeting serves as a crucial step in implementing a strategic plan to ensure enhanced employee motivation, ownership, and the possibility of potential tax benefits. Types of District of Columbia Minutes of Special Meeting to Adopt Stock Ownership Plan: 1. Regular District of Columbia Minutes of Special Meeting of the Board of Directors 2. Emergency District of Columbia Minutes of Special Meeting of the Board of Directors 3. Virtual District of Columbia Minutes of Special Meeting of the Board of Directors 4. Adjourned District of Columbia Minutes of Special Meeting of the Board of Directors Detailed Description: I. Meeting Date, Time, and Location: The Special Meeting of the Board of Directors of (Name of Corporation) to Adopt Stock Ownership Plan under Section 1244 of the Internal Revenue Code was held on [Date] at [Time] in [Location]. The meeting was called to order by the (Title of the Chairman/President) at exactly [Time]. II. Attendance: The following directors were present at the meeting: 1. (Name of Director) 2. (Name of Director) 3. (Name of Director) 4. (Name of Director) ... [Include all directors and their titles] III. Quorum Determination: The Chairman/President verified that a quorum was present, constituting a majority of the directors. The meeting, therefore, proceeded accordingly. IV. Call to Order and Purpose: The Chairman/President formally called the meeting to order and stated the purpose, which was to discuss and adopt a Stock Ownership Plan as authorized by Section 1244 of the Internal Revenue Code. V. Presentation and Discussion of Stock Ownership Plan: The Board of Directors was presented with a comprehensive plan, outlining the details, objectives, and benefits of implementing a stock ownership plan. Clarifications and discussions regarding the plan were facilitated to address any concerns or queries raised by the directors. VI. Voting and Adoption: Following the presentation and discussion, a motion was made to adopt the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. The motion was seconded by (Director's Name) and then put to a vote. The vote resulted in [number of votes in favor]/[total votes cast] in favor of adopting the plan. VII. Resolutions and Approval: Upon the successful adoption of the Stock Ownership Plan, the following resolutions were approved by the Board of Directors: 1. Approval of the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. 2. Designation of (Name of Official) as the administrator of the plan. 3. Authorization to implement the necessary administrative processes and actions for the successful execution of the plan. VIII. Adjournment: With no further business to discuss, the Chairman/President announced the closing of the Special Meeting at [Time]. The minutes of the meeting were recorded by (Secretary's Name). Conclusion: These detailed Minutes of the Special Meeting of the Board of Directors highlight the adoption of a Stock Ownership Plan under Section 1244 of the Internal Revenue Code by (Name of Corporation). By implementing this plan, the company aims to foster employee engagement, motivation, and potential tax benefits. These minutes ensure the transparent documentation of the meeting's proceedings, resolutions, and approvals in accordance with the regulations of the District of Columbia.