{"id":32269,"date":"2022-04-19T18:14:19","date_gmt":"2022-04-19T10:14:19","guid":{"rendered":"https:\/\/zegal.com\/directors-resolution-to-issue-convertible-notes-subsequent-rounds\/"},"modified":"2024-12-27T17:39:57","modified_gmt":"2024-12-27T09:39:57","slug":"directors-resolution-to-issue-convertible-notes-subsequent-rounds","status":"publish","type":"page","link":"https:\/\/zegal.com\/en-gb\/directors-resolution-to-issue-convertible-notes-subsequent-rounds\/","title":{"rendered":"Directors&#8217; Resolution to Issue Convertible Notes (Subsequent Rounds)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Directors&#8217; Resolution to Issue Convertible Notes is a formal document that the board of directors of a corporation may use to authorize the issuance of convertible notes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-can-t-startups-issue-shares-of-common-stock-to-investors\"><span class=\"ez-toc-section\" id=\"Why_cant_startups_issue_shares_of_Common_Stock_to_investors\"><\/span>Why can\u2019t startups issue shares of Common Stock to investors?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/zegal.com\/en-gb\/starting-a-business\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">Startups<\/a>&nbsp;can, in fact, issue shares of common stock to investors. Usually, friends and family members are issued shares of common stock. However, not all investors will accept shares of common stock for their investment.<\/p>\n\n\n\n<p>They will usually prefer shares of preferred stock with special rights. These are called convertible notes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-do-i-set-up-convertible-notes\"><span class=\"ez-toc-section\" id=\"How_do_I_set_up_convertible_notes\"><\/span>How do I set up convertible notes?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Once a board&nbsp;<a href=\"https:\/\/zegal.com\/en-gb\/directors-resolution-to-approve-fundraising-with-convertible-notes\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">approves fundraising with convertible notes<\/a>, they can issue a&nbsp;<a href=\"https:\/\/zegal.com\/en-gb\/directors-resolution-to-issue-convertible-notes-initial-round\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">first round of convertible notes<\/a>.<\/p>\n\n\n\n<p>This document allows a board to issue subsequent convertible notes for further fundraising.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FAQs A Directors&#8217; Resolution to Issue Convertible Notes is a formal document that the board of directors of a corporation may use to authorize the issuance of convertible notes. Why can\u2019t startups issue shares of Common Stock to investors? Startups&nbsp;can, in fact, issue shares of common stock to investors. Usually, friends and family members are [&hellip;]<\/p>\n","protected":false},"author":174,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":[13556],"meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"usecases":[],"class_list":["post-32269","page","type-page","status-publish","hentry","template-board-and-directors-resolutions"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Directors&#039; Resolution to Issue Convertible Notes (Subsequent Rounds) | Zegal<\/title>\n<meta name=\"description\" content=\"Create a document using our template for Directors&#039; Resolution to Issue Convertible Notes (Subsequent Rounds) | Zegal\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/zegal.com\/en-gb\/wp-json\/wp\/v2\/pages\/32269\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Directors&#8217; Resolution to Issue Convertible Notes (Subsequent Rounds)\" \/>\n<meta property=\"og:description\" content=\"Create a document using our template for Directors&#039; Resolution to Issue Convertible Notes (Subsequent Rounds) | Zegal\" \/>\n<meta property=\"og:url\" content=\"https:\/\/zegal.com\/en-gb\/directors-resolution-to-issue-convertible-notes-subsequent-rounds\/\" \/>\n<meta property=\"og:site_name\" content=\"Zegal UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/getzegal\/\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-27T09:39:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/zegal.com\/wp-content\/uploads\/2023\/09\/zegal-logo-red.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"627\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@getzegal\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-gb\\\/directors-resolution-to-issue-convertible-notes-subsequent-rounds\\\/\",\"url\":\"https:\\\/\\\/zegal.com\\\/en-gb\\\/directors-resolution-to-issue-convertible-notes-subsequent-rounds\\\/\",\"name\":\"Directors' Resolution to Issue Convertible Notes (Subsequent Rounds) | Zegal\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-gb\\\/#website\"},\"datePublished\":\"2022-04-19T10:14:19+00:00\",\"dateModified\":\"2024-12-27T09:39:57+00:00\",\"description\":\"Create a document using our template for Directors' Resolution to Issue Convertible Notes (Subsequent Rounds) | Zegal\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-gb\\\/directors-resolution-to-issue-convertible-notes-subsequent-rounds\\\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/zegal.com\\\/en-gb\\\/directors-resolution-to-issue-convertible-notes-subsequent-rounds\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-gb\\\/directors-resolution-to-issue-convertible-notes-subsequent-rounds\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Legal Templates\",\"item\":\"https:\\\/\\\/zegal.com\\\/en-gb\\\/all-docs\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Board and Directors' Resolutions\",\"item\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/template\\\/board-and-directors-resolutions\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Directors&#8217; Resolution to Issue Convertible Notes (Subsequent Rounds)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-gb\\\/#website\",\"url\":\"https:\\\/\\\/zegal.com\\\/en-gb\\\/\",\"name\":\"Zegal UK\",\"description\":\"Need legal? Click Zegal.\",\"publisher\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-gb\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/zegal.com\\\/en-gb\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-gb\\\/#organization\",\"name\":\"Zegal UK\",\"url\":\"https:\\\/\\\/zegal.com\\\/en-gb\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-gb\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/zegal.com\\\/wp-content\\\/uploads\\\/2021\\\/11\\\/zegal-logo-white.png\",\"contentUrl\":\"https:\\\/\\\/zegal.com\\\/wp-content\\\/uploads\\\/2021\\\/11\\\/zegal-logo-white.png\",\"width\":200,\"height\":69,\"caption\":\"Zegal UK\"},\"image\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-gb\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/getzegal\\\/\",\"https:\\\/\\\/x.com\\\/getzegal\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/getzegal\\\/\",\"https:\\\/\\\/www.youtube.com\\\/@legalzegal\"]}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Directors' Resolution to Issue Convertible Notes (Subsequent Rounds) | Zegal","description":"Create a document using our template for Directors' Resolution to Issue Convertible Notes (Subsequent Rounds) | Zegal","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/zegal.com\/en-gb\/wp-json\/wp\/v2\/pages\/32269\/","og_locale":"en_GB","og_type":"article","og_title":"Directors&#8217; Resolution to Issue Convertible Notes (Subsequent Rounds)","og_description":"Create a document using our template for Directors' Resolution to Issue Convertible Notes (Subsequent Rounds) | Zegal","og_url":"https:\/\/zegal.com\/en-gb\/directors-resolution-to-issue-convertible-notes-subsequent-rounds\/","og_site_name":"Zegal UK","article_publisher":"https:\/\/www.facebook.com\/getzegal\/","article_modified_time":"2024-12-27T09:39:57+00:00","og_image":[{"width":1200,"height":627,"url":"https:\/\/zegal.com\/wp-content\/uploads\/2023\/09\/zegal-logo-red.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_site":"@getzegal","twitter_misc":{"Estimated reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/zegal.com\/en-gb\/directors-resolution-to-issue-convertible-notes-subsequent-rounds\/","url":"https:\/\/zegal.com\/en-gb\/directors-resolution-to-issue-convertible-notes-subsequent-rounds\/","name":"Directors' Resolution to Issue Convertible Notes (Subsequent Rounds) | Zegal","isPartOf":{"@id":"https:\/\/zegal.com\/en-gb\/#website"},"datePublished":"2022-04-19T10:14:19+00:00","dateModified":"2024-12-27T09:39:57+00:00","description":"Create a document using our template for Directors' Resolution to Issue Convertible Notes (Subsequent Rounds) | Zegal","breadcrumb":{"@id":"https:\/\/zegal.com\/en-gb\/directors-resolution-to-issue-convertible-notes-subsequent-rounds\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/zegal.com\/en-gb\/directors-resolution-to-issue-convertible-notes-subsequent-rounds\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/zegal.com\/en-gb\/directors-resolution-to-issue-convertible-notes-subsequent-rounds\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Legal Templates","item":"https:\/\/zegal.com\/en-gb\/all-docs\/"},{"@type":"ListItem","position":2,"name":"Board and Directors' Resolutions","item":"https:\/\/zegal.com\/en-nz\/template\/board-and-directors-resolutions\/"},{"@type":"ListItem","position":3,"name":"Directors&#8217; Resolution to Issue Convertible Notes (Subsequent Rounds)"}]},{"@type":"WebSite","@id":"https:\/\/zegal.com\/en-gb\/#website","url":"https:\/\/zegal.com\/en-gb\/","name":"Zegal UK","description":"Need legal? Click Zegal.","publisher":{"@id":"https:\/\/zegal.com\/en-gb\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/zegal.com\/en-gb\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/zegal.com\/en-gb\/#organization","name":"Zegal UK","url":"https:\/\/zegal.com\/en-gb\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/zegal.com\/en-gb\/#\/schema\/logo\/image\/","url":"https:\/\/zegal.com\/wp-content\/uploads\/2021\/11\/zegal-logo-white.png","contentUrl":"https:\/\/zegal.com\/wp-content\/uploads\/2021\/11\/zegal-logo-white.png","width":200,"height":69,"caption":"Zegal UK"},"image":{"@id":"https:\/\/zegal.com\/en-gb\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/getzegal\/","https:\/\/x.com\/getzegal","https:\/\/www.linkedin.com\/company\/getzegal\/","https:\/\/www.youtube.com\/@legalzegal"]}]}},"_links":{"self":[{"href":"https:\/\/zegal.com\/en-gb\/wp-json\/wp\/v2\/pages\/32269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zegal.com\/en-gb\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/zegal.com\/en-gb\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/zegal.com\/en-gb\/wp-json\/wp\/v2\/users\/174"}],"replies":[{"embeddable":true,"href":"https:\/\/zegal.com\/en-gb\/wp-json\/wp\/v2\/comments?post=32269"}],"version-history":[{"count":0,"href":"https:\/\/zegal.com\/en-gb\/wp-json\/wp\/v2\/pages\/32269\/revisions"}],"wp:attachment":[{"href":"https:\/\/zegal.com\/en-gb\/wp-json\/wp\/v2\/media?parent=32269"}],"wp:term":[{"taxonomy":"template","embeddable":true,"href":"https:\/\/zegal.com\/en-gb\/wp-json\/wp\/v2\/template?post=32269"},{"taxonomy":"usecases","embeddable":true,"href":"https:\/\/zegal.com\/en-gb\/wp-json\/wp\/v2\/usecases?post=32269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}