Delaware 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: Delaware Minutes of Special Meeting to Adopt Stock Ownership Plan under Section 1244 of the Internal Revenue Code: (Name of Corporation) Keywords: Delaware, Special Meeting, Board of Directors, Stock Ownership Plan, Section 1244, Internal Revenue Code ------------------------------- Minutes of the Special Meeting of the Board of Directors of (Name of Corporation) held on [Date] 1. Call to Order — The Chairman of the Board, [Chairman's Name], called the meeting to order at [Time]. — A quorum was established with the presence of [Number] directors. 2. Roll Call — The Corporate Secretary, [Secretary's Name], called the roll, and the following directors were present: — [Director 1's Name— - [Director 2's Name] — [Director 3's Name— - ... 3. Approval of Agenda — The agenda for the meeting was reviewed and approved by unanimous consent. 4. Adoption of Stock Ownership Plan under Section 1244 of the Internal Revenue Code — [Discussion and Reasoning]: The Board discussed the benefits and implications of adopting a Stock Ownership Plan pursuant to Section 1244 of the Internal Revenue Code. — [Presentation of the Plan]: The Board reviewed the proposed Stock Ownership Plan, which aims to provide tax advantages for investors in the corporation. — [Questions and Clarifications]: Directors had the opportunity to ask questions and seek clarifications regarding the plan. — [Vote]: A motion was made by [Director's Name], and seconded by [Director's Name], to adopt the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. — The motion was put to a vote and approved unanimously. — [Resolution]: The Board resolved to adopt the Stock Ownership Plan, effective [Date]. 5. Adjournment — There being no further business to discuss, the Chairman adjourned the meeting at [Time]. ------------------------------- Different Types of Delaware Minutes of Special Meeting: — Delaware Minutes of Special Board Meeting to Amend Stock Ownership Plan under Section 1244 of the Internal Revenue Code — Delaware Minutes of Special Board Meeting to Utilize Tax Benefits under Stock Ownership Plan adopted under Section 1244 — Delaware Minutes of Special Board Meeting to Review Performance of Stock Ownership Plan under Section 1244 — Delaware Minutes of Special Board Meeting to Discuss Modification of Stock Ownership Plan under Section 1244

Title: Delaware Minutes of Special Meeting to Adopt Stock Ownership Plan under Section 1244 of the Internal Revenue Code: (Name of Corporation) Keywords: Delaware, Special Meeting, Board of Directors, Stock Ownership Plan, Section 1244, Internal Revenue Code ------------------------------- Minutes of the Special Meeting of the Board of Directors of (Name of Corporation) held on [Date] 1. Call to Order — The Chairman of the Board, [Chairman's Name], called the meeting to order at [Time]. — A quorum was established with the presence of [Number] directors. 2. Roll Call — The Corporate Secretary, [Secretary's Name], called the roll, and the following directors were present: — [Director 1's Name— - [Director 2's Name] — [Director 3's Name— - ... 3. Approval of Agenda — The agenda for the meeting was reviewed and approved by unanimous consent. 4. Adoption of Stock Ownership Plan under Section 1244 of the Internal Revenue Code — [Discussion and Reasoning]: The Board discussed the benefits and implications of adopting a Stock Ownership Plan pursuant to Section 1244 of the Internal Revenue Code. — [Presentation of the Plan]: The Board reviewed the proposed Stock Ownership Plan, which aims to provide tax advantages for investors in the corporation. — [Questions and Clarifications]: Directors had the opportunity to ask questions and seek clarifications regarding the plan. — [Vote]: A motion was made by [Director's Name], and seconded by [Director's Name], to adopt the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. — The motion was put to a vote and approved unanimously. — [Resolution]: The Board resolved to adopt the Stock Ownership Plan, effective [Date]. 5. Adjournment — There being no further business to discuss, the Chairman adjourned the meeting at [Time]. ------------------------------- Different Types of Delaware Minutes of Special Meeting: — Delaware Minutes of Special Board Meeting to Amend Stock Ownership Plan under Section 1244 of the Internal Revenue Code — Delaware Minutes of Special Board Meeting to Utilize Tax Benefits under Stock Ownership Plan adopted under Section 1244 — Delaware Minutes of Special Board Meeting to Review Performance of Stock Ownership Plan under Section 1244 — Delaware Minutes of Special Board Meeting to Discuss Modification of Stock Ownership Plan under Section 1244