What is an Approve Additional Fundraising with Convertible Notes?
A Resolution to Approve Additional Fundraising with Convertible Notes is a resolution passed by the director of the company for the second round of fundraising.
How to create an Approve Additional Fundraising with Convertible Notes
Easy to Use Legal Templates
Quickly and easily create any legal agreement for you or your team.
Affordable Plans
Straightforward pricing plans and bespoke packages built to simplify all your legal demands.
Vast Document Library
Zegal’s comprehensive collection of agreements means you always have what you need at your fingertips.
Start using Zegal for free
If you like it, pick a plan that suits you best.
What is a Resolution to Approve Additional Fundraising with Convertible Notes?
A Resolution to Approve Additional Fundraising with Convertible Notes is a resolution passed by the director of the company for the second round of fundraising.
A convertible note acts as a short-term loan for startups to fund their projects. So, when the first round of fundraising is successfully conducted then it is time to grow or expand the business. To do that a company has to pass a resolution through the director known as “Resolution to Approve Additional Fundraising with Convertible Notes”.
How are funds issued through Convertible Notes?
A Convertible Note is a form of debt or investment and is used by businesses to raise money. They can do so either through Convertible Notes or Equity. Essentially a Convertible Note is a loan that turns into ownership in the company.
A Directors’ Resolution to Issue Convertible Notes is a resolution to be passed by the directors of a company to approve the issue of convertible notes. This document is for the issue of subsequent rounds of convertible notes of a company that already has a Convertible Note Instrument in place.
There are two options when using a Directors’ Resolution to Issue Convertible Notes:
if a meeting of the board of directors is convened to address the issue, use the Board Minutes to Issue Convertible Notes; or
if the board resolution will be passed by way of a written resolution, use the Written Board Resolution to Issue Convertible Notes.
What is in a Directors Resolution to Approve Additional Fundraising with Convertible Notes?
In most jurisdictions, a simple majority of directors of the company must approve a Directors’ Resolution to Approve Fundraising with Convertible Notes. Additionally, the resolution must contain the following:
Details of the meeting (if using Board Minutes): A short statement describing when and where the meeting was held.
Date of passing the resolution: When this resolution was passed.
Details of the investor(s): Information regarding the investors who will be lending money and be issued for the convertible note.
The principal amount of subscription: Amount of the note that will be issued.
Company proposal to execute a Convertible Note Instrument: The company must provide details on how the note will be provisioned and the terms of the instrument.
Conclusion
A Convertible Note helps any business to issue funds and start their business. When the first round of fundraising is successfully conducted and the business needs to grow and expand, the company needs a resolution from the director which is known as a Director’s Resolution to Approve Additional Fundraising with Convertible Notes.
You Might Also Like
Along with this document, make sure you see these other templates in our library:
The Zegal Template Library
Zegal's template library is a list of essential and premium business templates for your everyday legal needs.
Save money and time without sacrificing quality or missing vital legal requirements. Whether you're a startup or a larger enterprise, Zegal lets anyone create a legal agreement.
Let us take care of the legals so you can focus on running your business.
If you need more help, our "Talk to a Lawyer" feature gives you access to a qualified lawyer to get all the expert advice you need.
Try it for free today!
Ready to get started?
Create a free account now and explore all of the Zegal features.
No credit card required
Nice things people say about Zegal.
"Using Zegal allows us to take a lean and efficient approach that cuts costs while maximising results."
Alex So
Managing Partner
"Zegal is easy to use and customer service is responsive and helpful! I strongly recommend it!!"
Alan NG
CEO
"Zegal makes onboarding a new client or employee fast and simple."
Veronika Kuznetsova
Managing Director
“Zegal really works well for all our legal documentation needs, and it is also user-friendly and mobile at the same time.”
Daniel W. Ho
Managing Director & Principal Consultant
“Zegal is like my teammate, helps me draft the right template, quickly gets my work done, and also saves me money on legal needs.”
Alan Schmoll
CEO & Co-Founder
“With colleagues, partners, and clients across the globe, Zegal provides an easy-to-use tool that streamlines processes that saves costs and time.”
Tony Wines
CEO of Turnkey
“Zegal has been such a great help in my business operations.”
Amanda A Atan
Managing Director at VIBES Mastery
“With Zegal, we work smarter rather than harder. Being a business professional, a proper document management system is always a must.”
Edgar Kautzner
Managing Consultant
“Zegal, a platform for compact package of legal templates, secured e-signing, reasonable cost and high level customer service.”
Paul Falzon
Director
“Zegal is easy to use, affordable and the platform is simple to navigate which makes the process of putting together a document fast and fuss-free.”
Jonathan Wong
Founder & Managing Director
“Love the new flow/design, very quick and easy to use now. I have done 2 or 3 customer contracts in a flash over the past 2 days.”
Chris Head
General Manager and Managing Editor
“Consistently positive experiences with Zegal’s technology, and customer services teams, who ensure that our issues or questions are responded to immediately.”
Tony Wines
CEO of Turnkey