Ambase Corporation

Shareholder Approval means approval of holders of a majority of the shares of Stock represented and voting in person or by proxy at an annual or special meeting of shareholders of the Company where a quorum is present.

Many private companies offer equity compensation in the form of employee stock options.The biggest is that you may not be able to sell the company stock you hold. Often, it's only if the company goes public that you may get the chance to sell your stock.

Appointment of auditors (if there are any) Appointment or re-appointment of directors. Removal of a director or the auditor. Adoption of the annual accounts and the reports of the directors and auditors. Declaration of dividends.

The Company's board of directors must approve all stock option grants, including the name of the recipient, the number of shares, the vesting schedule and the exercise price. This can be done either in a board meeting or via unanimous written consent.

By contrast, RSUs happen (they vest and you now own shares and owe taxes on their value) according to a company-dictated schedule.(Specific to Incentive Stock Options) Tax rates can be much lower than on either NSOs or RSUs. With NSOs and RSUs, basically everything is taxed as ordinary income.

Stock options are a form of compensation. Companies can grant them to employees, contractors, consultants and investors. These options, which are contracts, give an employee the right to buy or exercise a set number of shares of the company stock at a pre-set price, also known as the grant price.

It gives investors who purchase the private shares an ownership stake in the company. In exchange for obtaining money to grow your business, you give up sole ownership. Later, you may decide to pay the investors back and take back equity, or you may keep them on as part-owners until you sell your company.