Nassau New York 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
• County: Nassau
• 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). Nassau, New York: 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 Meeting Type: Special Meeting of the Board of Directors Location: Nassau, New York Date: [Insert Date] Time: [Insert Time] Attendees: 1. [Insert Director's Name] 2. [Insert Director's Name] 3. [Insert Director's Name] 4. [Insert Director's Name] 5. [Insert Director's Name] Call to Order: The meeting was called to order by [Insert Director's Name], the Chairman of the Board, at [Insert Time]. Opening Remarks: [Insert Director's Name] welcomed all attendees and expressed gratitude for their presence. He/she briefly explained the purpose of the meeting and emphasized the importance of adopting a Stock Ownership Plan under Section 1244 of the Internal Revenue Code. Review of Agenda: The Chairman requested the Board members to review the distributed meeting agenda. After a thorough review, the agenda was unanimously approved. Approval of Minutes: The minutes of the previous Board meeting held on [Insert Date] were presented for approval. After careful consideration, the minutes were unanimously approved with no revisions. Stock Ownership Plan Proposal: The Chairman introduced the Stock Ownership Plan proposal, highlighting its benefits and relevance under Section 1244 of the Internal Revenue Code. The proposal aimed to provide tax benefits to qualifying shareholders who incur losses on investments in the corporation's stock. Detailed provisions of the plan were discussed, including eligibility criteria, investment limits, and potential tax deductions. Board Discussion: Directors were given the opportunity to express their thoughts, concerns, and suggestions regarding the proposed Stock Ownership Plan. The discussion included an analysis of potential advantages, risks, and legal implications. Board members engaged in fruitful discussions, raising pertinent questions and seeking clarification on various aspects of the plan. Motion to Adopt Stock Ownership Plan: After a comprehensive discussion, [Insert Director's Name] made a motion to adopt the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. [Insert Director's Name] seconded the motion. The motion was put to a vote and unanimously approved, signifying the corporation's commitment to implement the plan. Next Steps and Assignments: The Board discussed the next steps and assigned responsibility for the plan's implementation. [Insert Director's Name] volunteered to oversee the drafting of the necessary plan documents, while [Insert Director's Name] would coordinate with legal counsel to ensure compliance with all regulatory requirements. Adjournment: With no further business to discuss, the Chairman thanked all attendees for their valuable contributions and officially adjourned the meeting at [Insert Time]. These minutes accurately reflect the proceedings of the Special Meeting of the Board of Directors, held on [Insert Date] in Nassau, New York, to adopt a Stock Ownership Plan under Section 1244 of the Internal Revenue Code. [Insert Director's Name] Secretary of the Board Other types of Nassau New York 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 could include: 1. Nassau New York Minutes of Special Meeting of the Board of Directors of (Name of Corporation) to Modify Existing Stock Ownership Plan under Section 1244 of the Internal Revenue Code. 2. Nassau New York Minutes of Special Meeting of the Board of Directors of (Name of Corporation) to Dissolve Stock Ownership Plan under Section 1244 of the Internal Revenue Code. 3. Nassau New York Minutes of Special Meeting of the Board of Directors of (Name of Corporation) to Extend Stock Ownership Plan under Section 1244 of the Internal Revenue Code.

Nassau, New York: 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 Meeting Type: Special Meeting of the Board of Directors Location: Nassau, New York Date: [Insert Date] Time: [Insert Time] Attendees: 1. [Insert Director's Name] 2. [Insert Director's Name] 3. [Insert Director's Name] 4. [Insert Director's Name] 5. [Insert Director's Name] Call to Order: The meeting was called to order by [Insert Director's Name], the Chairman of the Board, at [Insert Time]. Opening Remarks: [Insert Director's Name] welcomed all attendees and expressed gratitude for their presence. He/she briefly explained the purpose of the meeting and emphasized the importance of adopting a Stock Ownership Plan under Section 1244 of the Internal Revenue Code. Review of Agenda: The Chairman requested the Board members to review the distributed meeting agenda. After a thorough review, the agenda was unanimously approved. Approval of Minutes: The minutes of the previous Board meeting held on [Insert Date] were presented for approval. After careful consideration, the minutes were unanimously approved with no revisions. Stock Ownership Plan Proposal: The Chairman introduced the Stock Ownership Plan proposal, highlighting its benefits and relevance under Section 1244 of the Internal Revenue Code. The proposal aimed to provide tax benefits to qualifying shareholders who incur losses on investments in the corporation's stock. Detailed provisions of the plan were discussed, including eligibility criteria, investment limits, and potential tax deductions. Board Discussion: Directors were given the opportunity to express their thoughts, concerns, and suggestions regarding the proposed Stock Ownership Plan. The discussion included an analysis of potential advantages, risks, and legal implications. Board members engaged in fruitful discussions, raising pertinent questions and seeking clarification on various aspects of the plan. Motion to Adopt Stock Ownership Plan: After a comprehensive discussion, [Insert Director's Name] made a motion to adopt the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. [Insert Director's Name] seconded the motion. The motion was put to a vote and unanimously approved, signifying the corporation's commitment to implement the plan. Next Steps and Assignments: The Board discussed the next steps and assigned responsibility for the plan's implementation. [Insert Director's Name] volunteered to oversee the drafting of the necessary plan documents, while [Insert Director's Name] would coordinate with legal counsel to ensure compliance with all regulatory requirements. Adjournment: With no further business to discuss, the Chairman thanked all attendees for their valuable contributions and officially adjourned the meeting at [Insert Time]. These minutes accurately reflect the proceedings of the Special Meeting of the Board of Directors, held on [Insert Date] in Nassau, New York, to adopt a Stock Ownership Plan under Section 1244 of the Internal Revenue Code. [Insert Director's Name] Secretary of the Board Other types of Nassau New York 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 could include: 1. Nassau New York Minutes of Special Meeting of the Board of Directors of (Name of Corporation) to Modify Existing Stock Ownership Plan under Section 1244 of the Internal Revenue Code. 2. Nassau New York Minutes of Special Meeting of the Board of Directors of (Name of Corporation) to Dissolve Stock Ownership Plan under Section 1244 of the Internal Revenue Code. 3. Nassau New York Minutes of Special Meeting of the Board of Directors of (Name of Corporation) to Extend Stock Ownership Plan under Section 1244 of the Internal Revenue Code.