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The option plan must be approved by the stockholders within 12 months before or after the plan is adopted (see also Explanation: §423, Shareholder Approval Requirement) (IRC § 422(b)(1); Reg. §1.422-3).
An option grant is a right to acquire a set number of shares of stock of a company at a set price. Definition of Option Grant - Cooley GO cooleygo.com ? glossary ? option-grant cooleygo.com ? glossary ? option-grant
Granting an option requires the formal approval of your company's Board of Directors, either at a formal Board meeting or by a written consent signed by all of the members of the Board.
The option plan must be approved by the stockholders within 12 months before or after the plan is adopted (see also Explanation: §423, Shareholder Approval Requirement) (IRC § 422(b)(1); Reg. §1.422-3). Plan Requirements - Income Taxes - Deferred Compensation, Etc. cch.com ? federal ? irc ? explanation cch.com ? federal ? irc ? explanation