Search Results for "directors resolution"

What is a Directors’ Resolution to Appoint or Remove Directors? A Directors’ Resolution to Appoint or Remove Directors is used for adding directors to the board or documenting a director’s resignation. A Directors’ Resolution to Appoint or Remove Directors is a resolution passed by the directors of a company to appoint a new director, typically […]

A Directors’ Resolution to Adopt Share Option Plan is a resolution by the directors of a company to approve the adoption of an Employee Share Option Plan (ESOP). What is a Directors’ Resolution to Adopt Share Option Plan? This is a resolution by the directors of a company to approve the adoption of an Employee […]

What is the purpose of an auditor in a company? An Auditor has to analyze the accounts kept by the directors of a company and let them know of the real financial updates and situation of the company. Their role is to safeguard the interest of a company’s shareholders. Their analysis and revelation of the […]

Do all directors need to approve accounts? A company’s board of Directors must approve a company’s annual accounts and it needs to be signed by a director on behalf of the board of the company. Additionally, the signature of the director must be on the company’s balance sheet.

Essentially, a Directors’ Resolution to Approve Fundraising with Convertible Notes is a form of short-term debt that converts into equity.  Usually, it is of use in a fundraising event. Basically, this allows investors to provide a loan to the company in exchange for shares in the company versus principal and interest and future repayment. Basically, […]

A Directors’ Resolution to Issue Shares is a resolution to be passed by the directors of a company to approve the allotment and issue of new shares. Important note: There are statutory restrictions on the circumstances under which the board of directors can authorise allotment and issue of shares, e.g. when the shareholders have already […]

What is a Notice of a Special Meeting of the Directors? A Notice of Special Meeting of Directors is a notice given to the board of directors of a company to inform them of a special meeting. These special meetings of the board are held to discuss urgent business that can’t wait until the next […]

What are the steps? 1: Decide on a clear reporting structure 2: Consult the company constitution 3: Draft a Director’s Service Contract For small businesses and startups —and large companies alike— how you set up your board of directors is essential. Chiefly, the board is responsible for governing a business, as well as setting the strategic direction. In […]

What is a Shareholder’s Resolution to Appoint Directors? Simply put, a Shareholders’ Resolution to Appoint Directors is a resolution passed by the shareholders of a company to appoint new directors. Normally, a Shareholders’ Resolution to Appoint Directors is an ordinary resolution. Essentially, this means it requires the approval of more than 50% of shareholders attending […]

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 […]

What is a Shareholders Resolution to Change Company Name? A Shareholders’ Resolution to Change Company Name is a written record of the company’s decision to change its name. A Shareholders’ Resolution to Change Company Name is a special resolution (i.e. requires the approval of more than 75% of shareholders attending and voting on the matter). […]

Can the financial year exceed 12 months? Yes, a financial year can consist of more than 12 months. However, it may not consist of more than 15 months. In special cases with the permission granted from a registrar it can be extended for uptop 18 months.   

What happens to a Convertible Note if the startup fails? 
It largely depends on how the note was drafted. In cases where it is not guaranteed by any of the principles, it is taken as a regular debt. However, if the company has some money, it pays for the liabilities, and the remaining amount is […]

Why can’t startups issue shares of Common Stock to investors? Start-ups 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. They will usually prefer shares of preferred stock, with special […]

  A newly incorporated company, whether public or private, needs to appoint its first auditors. Generally, this is put in place by the board of directors of the company by passing a resolution (Director’s resolution or Board resolution) within a certain time limit. Different countries have different time limits. For example, in Hong Kong, the […]

What is an Approve Company’s Financial Statements? A Directors’ Resolution to Approve Company’s Financial Statements is a resolution passed by the directors of a company to approve the audited Financial Statements and the Directors’ Statement for a particular financial year before these statements are presented to the Shareholders of the company. The directors’ resolution can […]

What is a Directors’ Resolution to Approve the Company’s Share Option Plan? A Directors’ Resolution to Approve a Share Option Plan is a resolution to be passed by the directors of a company to approve the adoption of an employee share option plan. A Share Option Plan is used to reward the high-performing candidate by […]

What is a Directors’ Resolution to Change the Company’s Financial Year End? A Directors’ Resolution to Change Financial Year End is a resolution passed by the directors of a company to change the financial year-end of a company. There are statutory restrictions on how the financial year-end can be changed. Consult your company secretary before […]

What are the steps? 1. Identify the type of resolution needed 2. Draft the required written resolution  3. Adopt the decision as a shareholders’ resolution 4. [If required] Update the relevant government department or registry What is a shareholders’ resolution? A shareholders’ resolution is a formal decision of the company voted on by the shareholders, […]

What is a Director’s Service Contract? A Director’s Service Contract is a contract by which a company hires a director as an employee. The Director’s Service Contract is a long-form contract with detailed provisions on various aspects of employment. When drafting a Director’s Service Contract, the employer should be aware of certain statutory provisions in […]

An Employee Share Option Plan (ESOP) is a scheme that sets out the framework under which share options go to its employees. It’s a common mechanism to incentivise employees. What is an Employee Share Option Plan? A share option plan is commonly used by companies to attract, reward, and retain talents. Yypically their employees. Additionally, […]

What is a Directors’ Resolution to Issue New Shares? A Directors’ Resolution to Issue New Shares is a resolution to be passed by the directors of a company to approve the allotment and issue of new shares. After using this Directors’ Resolution, remember to: file the relevant form to update the relevant government department or […]

What is a Job Offer Letter? A Job Offer Letter is a formal letter that is sent to a prospective employee whom you have selected and decided to hire for the position in your organization. A Job Offer Letter contains clear terms and conditions of the job for both the employee and the employer. When signed, it […]