
Shareholder resolution approving issue of shares to new share investor and adopting new articles
Use this shareholder resolution as part of your process when using our Shareholders agreement and the accompanying Articles of association, if you are issuing shares to a new investor.
It is not enough to simply have your all your shareholders including your new investor sign the shareholders' agreement. You must take steps to formally adopt and approve it by:
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getting the approval of your board of directors; then
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getting a shareholder resolution from your existing shareholders that approves the issue of new shares to the investor and adopts the new articles of association for the company.
This shareholders' resolution, once circulated and signed, is a straightforward way to take care of the second of these two necessary steps.
For the first step - board approval - you will need one of:
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Board minutes approving shareholders' agreement and new articles (if you want a board meeting);
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Written board resolutions approving shareholders' agreement and new articles (if you don't want a board meeting); or
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Sole director resolutions approving shareholders' agreement and new articles (if you only have one director).
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