Sacramento California 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: Sacramento
• 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). 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 Date: [Insert Date] Meeting Time: [Insert Time] Location: [Insert Location] Attendees: 1. [Insert Name of Director] 2. [Insert Name of Director] 3. [Insert Name of Director] 4. [Insert Name of Director] 5. [Insert Name of Director] Agenda: I. Call to Order The meeting was called to order by [Insert Name] at [Insert Time]. II. Roll Call A roll call was conducted, and all members of the board were present. III. Approval of Previous Minutes The minutes of the previous meeting held on [Insert Date] were reviewed and unanimously approved by the board. IV. Introduction and Discussion of Stock Ownership Plan [Insert Name], the [Insert Position], presented a detailed proposal for the adoption of a Stock Ownership Plan under Section 1244 of the Internal Revenue Code. The plan aims to provide certain tax benefits to individual shareholders in case of a loss on the sale or exchange of their stock. V. Review of Plan Provisions The proposed Stock Ownership Plan was discussed in detail, highlighting the following key provisions: — Eligibility criteria for shareholders to participate in the plan — Limitations on the amount of stock that can qualify under Section 1244 — Conditions for stockholder investment in the corporation — Procedure for filing Section 1244 stock with the Internal Revenue Service VI. Motion and Vote Following the discussion, a motion was made by [Insert Name] to adopt the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. The motion was seconded by [Insert Name]. The board members voted as follows: — [Insert NamFavorvo— - [Insert Name]: In favor — [Insert NamFavorvo— - [Insert Name]: In favor — [Insert Name]: In favor The motion was unanimously approved. VII. Adjournment With no further business to discuss, the meeting was adjourned at [Insert Time]. These minutes are hereby certified as accurate and complete by the undersigned: ____________________ [Insert Name] Secretary of the Board Different types of Sacramento California 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 variations in meeting dates, times, locations, and attendees, depending on individual corporation requirements and circumstances.

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 Date: [Insert Date] Meeting Time: [Insert Time] Location: [Insert Location] Attendees: 1. [Insert Name of Director] 2. [Insert Name of Director] 3. [Insert Name of Director] 4. [Insert Name of Director] 5. [Insert Name of Director] Agenda: I. Call to Order The meeting was called to order by [Insert Name] at [Insert Time]. II. Roll Call A roll call was conducted, and all members of the board were present. III. Approval of Previous Minutes The minutes of the previous meeting held on [Insert Date] were reviewed and unanimously approved by the board. IV. Introduction and Discussion of Stock Ownership Plan [Insert Name], the [Insert Position], presented a detailed proposal for the adoption of a Stock Ownership Plan under Section 1244 of the Internal Revenue Code. The plan aims to provide certain tax benefits to individual shareholders in case of a loss on the sale or exchange of their stock. V. Review of Plan Provisions The proposed Stock Ownership Plan was discussed in detail, highlighting the following key provisions: — Eligibility criteria for shareholders to participate in the plan — Limitations on the amount of stock that can qualify under Section 1244 — Conditions for stockholder investment in the corporation — Procedure for filing Section 1244 stock with the Internal Revenue Service VI. Motion and Vote Following the discussion, a motion was made by [Insert Name] to adopt the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. The motion was seconded by [Insert Name]. The board members voted as follows: — [Insert NamFavorvo— - [Insert Name]: In favor — [Insert NamFavorvo— - [Insert Name]: In favor — [Insert Name]: In favor The motion was unanimously approved. VII. Adjournment With no further business to discuss, the meeting was adjourned at [Insert Time]. These minutes are hereby certified as accurate and complete by the undersigned: ____________________ [Insert Name] Secretary of the Board Different types of Sacramento California 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 variations in meeting dates, times, locations, and attendees, depending on individual corporation requirements and circumstances.