Capital Contribution Resolution

State:
Multi-State
Control #:
US-0040-CR
Format:
Word; 
Rich Text
Instant download

Description

The Capital Contribution Resolution is a formal document used by a corporation's Board of Directors to authorize the issuance of common stock in exchange for cash payments and the transfer of assets. This resolution enables the corporation to acknowledge capital contributions made by individuals specified in the document, securing their ownership of shares based on their contributions. Key features of the form include sections for detailing the amounts paid, the names of contributors, and the equivalent shares of stock, ensuring clarity in ownership and monetary exchange. Filling out the resolution involves entering the corporation's name, the meeting date, and listing contributors alongside their respective shares and contributions. Editors should ensure accurate entries and compliance with the corporation's bylaws. This form is particularly useful for attorneys, partners, and owners as it provides a legal framework to document ownership changes and capital investments, reinforcing corporate governance. Paralegals and legal assistants can utilize this form to streamline the documentation process, ensuring all necessary information is captured accurately and efficiently, supporting the corporation's financial structuring.
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FAQ

For example, an owner might take out a loan and use the proceeds to make a capital contribution to the company. Businesses can also receive capital contributions in the form of non-cash assets such as buildings and equipment. These scenarios are all types of capital contributions and increase owners' equity.

Contents Define the parties involved in the agreement and their respective roles. Identify the purpose of the agreement, including the capital contribution amount and any related terms and conditions. Detail any applicable taxes, fees, or charges related to the agreement.

Resolutions of the shareholders approving an increase in the authorized capital of the corporation. These resolutions are drafted as clauses to be inserted into minutes of a special meeting of shareholders or resolutions in writing of all the shareholders entitled to vote on the resolution.

Contributed Capital Formula It is calculated by subtracting retained earnings from total equity. read more is the par value of issued shares. The common stock of the company appears on its balance sheet below as common stock and preferred stock. Additional Paid-in Capital ? The additional paid-in capital.

Board Resolutions: Capital Contribution (Corporate Limited Partner) Resolutions of the board of directors of a corporate limited partner authorizing an additional contribution of capital to a limited partnership (LP). This Standard Clause has integrated Drafting Notes with important explanations and drafting tips.

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Capital Contribution Resolution