Shareholder Consent Form New Company
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FAQ
A shareholder consent is the authorization of shareholders to carry out a specific corporate action. For example, a shareholder consent is used to elect/remove a member of the board of directors, approve a merger, and implement a Stock Incentive Plan (SIP).
Considerations in preparing the informed consent document: Elements of consent present. Complete explanations. Lay language. Protection of confidentiality. No unproven claims of effectiveness. Device studies include a statement that the study includes an evaluation of the safety of the test article.
Every issuance of securities requires some form of board approval. Shareholder consent is also required in some cases. Most notably, shareholders must approve the issuance of common stock, exceeding 1% of the total number of shares or 1% of the outstanding voting power, to related parties.
Write directly to the reader, as though you are explaining the facts in person. Informed consent language should be written in the second person (?you?), not in the first person (?I?). Minimize passive voice to the extent possible.
Consent to Participate I have been encouraged to ask questions and all of my questions have been answered to my satisfaction. I have also been informed that I can withdraw from the study at any time. By signing this form, I voluntarily agree to participate in this study.