Kansas 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: Kansas 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: Kansas, minutes of special meeting, board of directors, corporation, stock ownership plan, Section 1244, Internal Revenue Code, detailed description I. Introduction The following document presents the detailed minutes of the special meeting of the board of directors of (Name of Corporation), held in the state of Kansas, to discuss and adopt a stock ownership plan under Section 1244 of the Internal Revenue Code. This plan aims to provide several benefits and incentives to the corporation's shareholders. The meeting was conducted in compliance with Kansas corporate regulations and the Internal Revenue Code. II. Meeting Details 1. Meeting Date and Time: [Date] at [Time] 2. Meeting Location: [Location] III. Attendance The meeting was called to order, and the following board members were present: 1. [Name], Chairman of the Board 2. [Name], Director 3. [Name], Director 4. [Name], Director 5. [Name], Director Also present: 1. [Name], Legal Advisor 2. [Name], Corporate Secretary IV. Approval of Agenda The board members reviewed and approved the meeting's agenda unanimously. V. Stock Ownership Plan Proposal The Chairman initiated a discussion on the adoption of a stock ownership plan under Section 1244 of the Internal Revenue Code by (Name of Corporation). This plan is intended to encourage ownership and investment in the corporation's stock while providing tax benefits to qualifying shareholders. VI. Presentation of Stock Ownership Plan The Legal Advisor presented a detailed overview of the proposed stock ownership plan, highlighting its key features, benefits, and eligibility criteria. The plan included provisions aiming to attract new investors and secure the loyalty and commitment of existing shareholders. VII. Discussions and Amendments During the meeting, the board members engaged in extensive discussions regarding the proposed stock ownership plan. Amendments were suggested, primarily focusing on refining eligibility requirements, vesting periods, and the potential tax advantages for shareholders in accordance with Section 1244 of the Internal Revenue Code. VIII. Resolution and Adoption Upon careful consideration, the board members unanimously resolved to adopt the stock ownership plan, as amended, under Section 1244 of the Internal Revenue Code. The plan's implementation and subsequent communication to shareholders were delegated to the Chief Executive Officer and the Corporate Secretary. IX. Adjournment With no further business to discuss, the meeting was adjourned at [Time], after which the board members and attendees signed the minutes. Variations of Kansas 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 may include: 1. Kansas Minutes of Preliminary Discussion of Stock Ownership Plan 2. Kansas Minutes of Special Meeting of the Board of Directors to Revise Stock Ownership Plan under Section 1244 of the Internal Revenue Code 3. Kansas Minutes of Special Meeting of the Board of Directors to Terminate Stock Ownership Plan under Section 1244 of the Internal Revenue Code Note: The variations will depend on the specific circumstances and actions taken by the board of directors regarding the stock ownership plan.

Title: Kansas 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: Kansas, minutes of special meeting, board of directors, corporation, stock ownership plan, Section 1244, Internal Revenue Code, detailed description I. Introduction The following document presents the detailed minutes of the special meeting of the board of directors of (Name of Corporation), held in the state of Kansas, to discuss and adopt a stock ownership plan under Section 1244 of the Internal Revenue Code. This plan aims to provide several benefits and incentives to the corporation's shareholders. The meeting was conducted in compliance with Kansas corporate regulations and the Internal Revenue Code. II. Meeting Details 1. Meeting Date and Time: [Date] at [Time] 2. Meeting Location: [Location] III. Attendance The meeting was called to order, and the following board members were present: 1. [Name], Chairman of the Board 2. [Name], Director 3. [Name], Director 4. [Name], Director 5. [Name], Director Also present: 1. [Name], Legal Advisor 2. [Name], Corporate Secretary IV. Approval of Agenda The board members reviewed and approved the meeting's agenda unanimously. V. Stock Ownership Plan Proposal The Chairman initiated a discussion on the adoption of a stock ownership plan under Section 1244 of the Internal Revenue Code by (Name of Corporation). This plan is intended to encourage ownership and investment in the corporation's stock while providing tax benefits to qualifying shareholders. VI. Presentation of Stock Ownership Plan The Legal Advisor presented a detailed overview of the proposed stock ownership plan, highlighting its key features, benefits, and eligibility criteria. The plan included provisions aiming to attract new investors and secure the loyalty and commitment of existing shareholders. VII. Discussions and Amendments During the meeting, the board members engaged in extensive discussions regarding the proposed stock ownership plan. Amendments were suggested, primarily focusing on refining eligibility requirements, vesting periods, and the potential tax advantages for shareholders in accordance with Section 1244 of the Internal Revenue Code. VIII. Resolution and Adoption Upon careful consideration, the board members unanimously resolved to adopt the stock ownership plan, as amended, under Section 1244 of the Internal Revenue Code. The plan's implementation and subsequent communication to shareholders were delegated to the Chief Executive Officer and the Corporate Secretary. IX. Adjournment With no further business to discuss, the meeting was adjourned at [Time], after which the board members and attendees signed the minutes. Variations of Kansas 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 may include: 1. Kansas Minutes of Preliminary Discussion of Stock Ownership Plan 2. Kansas Minutes of Special Meeting of the Board of Directors to Revise Stock Ownership Plan under Section 1244 of the Internal Revenue Code 3. Kansas Minutes of Special Meeting of the Board of Directors to Terminate Stock Ownership Plan under Section 1244 of the Internal Revenue Code Note: The variations will depend on the specific circumstances and actions taken by the board of directors regarding the stock ownership plan.