casemark/initial-board-resolutions

Initial Board Resolutions

Drafts organizational meeting minutes and initial board resolutions for a newly formed U.S. corporation.

Prerequisites

Gather before drafting:

1. Articles of incorporation — legal name, state, incorporation date, authorized capital structure
2. Bylaws — adopted or draft (note indemnification, exculpation, supermajority provisions)
3. Directors & officers — full names, addresses, titles, compensation
4. Initial shareholders — name, share count, class, consideration (cash/property/services with FMV)
5. Pre-incorporation agreements — contracts or commitments signed before filing
6. IP inventory — prior-developed IP being contributed; PIIA status
7. Tax elections — S-corp, §83(b), §1244, §1202 QSBS
8. Banking — institution, signatories, signature thresholds

Quick Start

Draft a preamble authenticating the meeting (date, format, directors present, quorum confirmation, chairperson, secretary, notice status). Then resolve each category below in order. Use exact legal name from articles throughout. Close with adjournment and Secretary certification.

Resolution format:

RESOLVED, THAT [corporation name] hereby [action], effective [date]; and

FURTHER RESOLVED, THAT the officers of the Corporation are hereby authorized and directed to take all actions necessary or appropriate to carry out the purposes and intent of the foregoing resolution.

Resolution Categories

| # | Resolution | Key Points | |---|-----------|-----------| | 1 | Bylaw Adoption | Reference bylaws by date; Secretary to maintain original; acknowledge indemnification/exculpation provisions | | 2 | Officer Elections | Title, full name, effective date; enumerate authority or cross-reference bylaws; address compensation or defer | | 3 | Banking Authorization | Institution(s); signatories; dual-signature thresholds (e.g., >$10K); authorize electronic banking, wires, ACH, cards | | 4 | Stock Issuance | Per issuance: shares, class, recipient, consideration with FMV; board finding of adequate consideration; federal exemption (§4(a)(2), Reg D) + state exemption; stock ledger entry | | 5 | Pre-Incorporation Ratification | Each agreement by title/date/counterparty; board finding of best interest; authorize officer confirmations | | 6 | IP Assignment | PIIA execution for all founders/employees/consultants; schedule contributed pre-incorporation IP; confirm unencumbered ownership | | 7 | Tax & Fiscal Year | Fiscal year; EIN application; state/local registrations; S-corp election (Form 2553) if applicable; §83(b) elections if vesting | | 8 | Operational Authorizations | Officer contract authority up to $[X]; principal office; foreign qualifications; business licenses | | 9 | Professional Advisors | Legal counsel; accountant/CPA; payroll service; registered agent | | 10 | D&O Insurance | Indemnification to fullest extent of law; indemnification agreements; D&O/EPLI/fiduciary insurance | | 11 | Record-Keeping | Secretary maintains minute book (articles, bylaws, minutes, consents, stock ledger); procedures for future meetings | | 12 | Adjournment | Time; Secretary certification of quorum and due adoption; signature lines |

Securities Exemption Reference

| Situation | Federal Exemption | State Analog | |-----------|------------------|-------------| | Founder shares, accredited investors | §4(a)(2) | Founder/limited offering exemption | | Broader private offering | Reg D (Rule 504/506) | Reg D notice filing | | Ordinary loss treatment | §1244 (≤$1M aggregate) | N/A | | QSBS exclusion | §1202 (C-corp, ≤$50M assets) | N/A |

S-Corp Election Checklist

• [ ] File Form 2553 within 2 months + 15 days of tax year start (or preceding year)
• [ ] All shareholders consent on Form 2553
• [ ] ≤100 shareholders; one class of stock; no corporate/partnership shareholders
• [ ] Resolution authorizes filing; attach consents as exhibit

Pitfalls

• Quorum: Confirm majority of authorized directors before proceeding
• Adequate consideration: Each stock issuance needs independent board finding to avoid watered-stock claims
• §83(b) deadline: Must file within 30 days of grant — flag urgency for vesting shares
• State variation: Officer requirements, notice periods, and consent procedures vary by state of incorporation
• Securities exemptions: Do not include reliance language without confirming purchaser qualification
• Regulated industries: Fintech, healthcare, cannabis require additional industry-specific resolutions
• Exhibits: Attach executed PIIAs, stock purchase agreements, and investment representation letters