The Initial Directors Meeting (AKA: Initial Organizational Meeting) is the first directors meeting a new corporation will hold. It should be held prior to a corporation starting business operations. This all important meeting sets up some of the most important structural issues of a corporation:
- Who are the officers?
- How will it operate?
- Who has authority to open/manage the corporate banking accounts?
- Who is authorized to issue the corporation's stock?
- Is the Corp. authorized to be an S Corp. (if that applies)?
The decisions (AKA: Resolutions) of this Initial Directors Meeting are written down, proving they took place, and kept in the official corporate records. This is the case even if there is only one person occupying all the roles of director, officers, & shareholder.
After a corporation is formed, it usually only has one or more directors, but no officers and certainly no shareholders (owners). Without an Initial Organizational Meeting a corporation cannot go forward.
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