CaseMark Shareholder Resolution to Dissolve
Drafts a formal shareholder resolution authorizing voluntary corporate dissolution with proper statutory compliance and corporate formalities.
Prerequisites
Gather before drafting:
- State of incorporation — voting thresholds, notice periods, and filing requirements vary by state
- Articles of incorporation and bylaws — governing document requirements for dissolution votes
- Board resolution recommending dissolution — date and substance of board action
- Shareholder register — outstanding shares by class, voting rights
- Business reason — purpose completion, unprofitability, dispute, strategic decision
- Liability inventory — pending litigation, creditor claims, contracts, employee obligations, environmental issues
- Adoption method — special meeting, annual meeting, or written consent in lieu of meeting
Quick Start
Structure the resolution in five sections: heading, recitals, resolutions, voting record, and certification. Each section must reflect the specific state dissolution statute. Identify the governing statute first (e.g., DGCL section 275, MBCA section 14.02, Cal. Corp. Code section 1900) and build every section around its requirements. [VERIFY statute]
Document Structure
Section 1: Heading and Corporate Identification
Include: exact legal corporate name (per articles), state of incorporation, principal place of business (if different), adoption method (meeting or written consent), date/time/location or consent effective date, and notice confirmation per bylaws and state law.
Section 2: Recitals (WHEREAS Clauses)
Draft each as a separate WHEREAS clause:
- Business reason for dissolution
- Board recommendation with date of board resolution
- Statutory prerequisites satisfied (creditor notifications, tax clearances, regulatory approvals)
- Summary winding-up plan: asset liquidation, liability satisfaction, shareholder distributions
- Special considerations: pending litigation, contractual obligations, employee matters, environmental liabilities
Section 3: Resolutions (RESOLVED Clauses)
Draft separate RESOLVED clauses for each authorization:
- Approval of dissolution under applicable state business corporation act
- Authorization to prepare, execute, and file articles/certificate of dissolution with secretary of state
- Designation of officers/directors as liquidating trustees with authority to sell/transfer assets, settle claims, pay debts, make distributions per liquidation preferences, and execute all necessary documents
- Disposition of corporate books and records with custodian designation and statutory retention period
- Cancellation of shares, surrender of stock certificates, mechanics of final distributions
Section 4: Voting Record
Document: total shares outstanding (by class if applicable), shares present/represented, quorum confirmation citing bylaws section, votes FOR (count and percentage), votes AGAINST, abstentions, separate class vote results if applicable, and confirmation that the statutory threshold was met.
Common thresholds: Delaware — majority of outstanding shares (DGCL section 275); California — majority of outstanding shares (Corp. Code section 1900); MBCA states — majority of outstanding shares (section 14.02). Always verify against specific state statute and articles. [VERIFY]
Section 5: Certification and Execution
Meeting adoption: Corporate secretary certification attesting review of minutes, resolution duly adopted by required vote, and resolution in full force and effect. Signature lines for secretary and presiding officer.
Written consent adoption: Signature block for each consenting shareholder (printed name, signature, date, shares held). Include notarization block if required by state law or needed for filing. Cite statutory provision permitting action without a meeting.
Pitfalls and Checks
- State-specific compliance is mandatory — do not assume uniform rules; confirm voting threshold, notice period, and filing requirements for the specific state [VERIFY]
- Corporate name must match exactly as it appears in the articles of incorporation
- Reference the specific statute authorizing voluntary dissolution in the resolution text
- Multiple share classes — distributions must follow the liquidation waterfall in the articles
- Record retention — most states require books and records maintenance for 3-7 years post-dissolution [VERIFY]
- Do not draft tax clearance certificates or regulatory filings — flag these as separate required actions
- Use formal legal drafting conventions: numbered paragraphs, consistent defined terms, no ambiguity