Utah Approval of Stock Option Plan

State:
Multi-State
Control #:
US-CC-18-211B-NE
Format:
Word; 
Rich Text
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Description

This sample form, a detailed Approval of Stock Option Plan, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats.
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FAQ

The Business Judgment Rule [1] Officers and directors must make decisions that they believe, in good faith, to be in the best interests of their companies and must make decisions after appropriate research and due diligence inquiries. The decisions must be the products of appropriate care and thought.

The chief distinguishing factor of a corporation is its limited liability. The owners have a direct claim on the corporation's assets in direct correlation with their ownership of shares. However, their liabilities are limited to their investment in the corporation.

If the plaintiff can prove that the director acted in gross negligence or bad faith, then the court will not uphold the business judgment rule. Similarly, if the plaintiff can prove that the director had a conflict of interest, then the court will not uphold the business judgment rule.

Most management actions are protected from judicial scrutiny by the business judgement rule: absent bad faith, fraud, or breach of a fiduciary duty, the judgement of the managers of a corporation is conclusive.

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Utah Approval of Stock Option Plan