Chicago Illinois 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
• City: Chicago
• 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). Chicago, Illinois 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: Chicago, Illinois, Special Meeting, Board of Directors, Stock Ownership Plan, Section 1244, Internal Revenue Code Minutes of the Special Meeting of the Board of Directors (Name of Corporation) Date: [Enter Date] Location: [Enter Location] I. Call to Order The special meeting of the Board of Directors of (Name of Corporation) was called to order by [Chairperson's Name] at [Enter Time]. II. Roll Call The following members of the Board of Directors were present: 1. [Director's Name] 2. [Director's Name] 3. [Director's Name] ... [Provide a complete list of the directors present] III. Purpose of the Meeting The Chairperson introduced the purpose of the meeting, which was to discuss and adopt a Stock Ownership Plan under Section 1244 of the Internal Revenue Code. IV. Presentation of Stock Ownership Plan [Enter Name and Position of Presenter], [Enter Company's Name], presented an overview of the proposed Stock Ownership Plan. The plan outlined the benefits, structure, and goals of the plan, emphasizing compliance with Section 1244 of the Internal Revenue Code. V. Discussion The Board of Directors engaged in a comprehensive discussion regarding the Stock Ownership Plan, focusing on the potential impact on shareholders, tax implications, and alignment with the company's long-term growth objectives. Various questions were raised, and concerns were addressed by the presenter. VI. Resolution to Adopt the Stock Ownership Plan After thorough deliberation, the Board of Directors unanimously agreed to adopt the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. The resolution reads as follows: "Resolved, that the Board of Directors of (Name of Corporation) hereby approves the adoption of the Stock Ownership Plan as presented, in accordance with Section 1244 of the Internal Revenue Code." VII. Adjournment With no further business to discuss, the meeting was adjourned at [Enter Time]. Approved by: [Signature of Chairperson] [Printed Name of Chairperson] [Date] [Signature of Secretary] [Printed Name of Secretary] [Date] Types of Chicago, Illinois 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: 1. Regular Special Meeting: A regular special meeting called by the Board of Directors to discuss and adopt the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. This typically occurs during the standard course of business. 2. Emergency Special Meeting: An emergency special meeting triggered by unforeseen circumstances, where prompt action is necessary to address urgent matters related to the adoption of the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. 3. Annual General Meeting: A yearly gathering of the Board of Directors to review the overall performance of the company and subsequent adoption of the Stock Ownership Plan, conforming to Section 1244 of the Internal Revenue Code.

Chicago, Illinois 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: Chicago, Illinois, Special Meeting, Board of Directors, Stock Ownership Plan, Section 1244, Internal Revenue Code Minutes of the Special Meeting of the Board of Directors (Name of Corporation) Date: [Enter Date] Location: [Enter Location] I. Call to Order The special meeting of the Board of Directors of (Name of Corporation) was called to order by [Chairperson's Name] at [Enter Time]. II. Roll Call The following members of the Board of Directors were present: 1. [Director's Name] 2. [Director's Name] 3. [Director's Name] ... [Provide a complete list of the directors present] III. Purpose of the Meeting The Chairperson introduced the purpose of the meeting, which was to discuss and adopt a Stock Ownership Plan under Section 1244 of the Internal Revenue Code. IV. Presentation of Stock Ownership Plan [Enter Name and Position of Presenter], [Enter Company's Name], presented an overview of the proposed Stock Ownership Plan. The plan outlined the benefits, structure, and goals of the plan, emphasizing compliance with Section 1244 of the Internal Revenue Code. V. Discussion The Board of Directors engaged in a comprehensive discussion regarding the Stock Ownership Plan, focusing on the potential impact on shareholders, tax implications, and alignment with the company's long-term growth objectives. Various questions were raised, and concerns were addressed by the presenter. VI. Resolution to Adopt the Stock Ownership Plan After thorough deliberation, the Board of Directors unanimously agreed to adopt the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. The resolution reads as follows: "Resolved, that the Board of Directors of (Name of Corporation) hereby approves the adoption of the Stock Ownership Plan as presented, in accordance with Section 1244 of the Internal Revenue Code." VII. Adjournment With no further business to discuss, the meeting was adjourned at [Enter Time]. Approved by: [Signature of Chairperson] [Printed Name of Chairperson] [Date] [Signature of Secretary] [Printed Name of Secretary] [Date] Types of Chicago, Illinois 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: 1. Regular Special Meeting: A regular special meeting called by the Board of Directors to discuss and adopt the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. This typically occurs during the standard course of business. 2. Emergency Special Meeting: An emergency special meeting triggered by unforeseen circumstances, where prompt action is necessary to address urgent matters related to the adoption of the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. 3. Annual General Meeting: A yearly gathering of the Board of Directors to review the overall performance of the company and subsequent adoption of the Stock Ownership Plan, conforming to Section 1244 of the Internal Revenue Code.