Amend Corporate Articles and Bylaws€¦ · Legal Solutions for You, Your Family & Business Amend Corporate Articles and Bylaws Page 4 Introduction F orming a corporation is an important,

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Amend Corporate Articles and Bylawsby Anthony Mancuso

Forms Included in Th is Kit

Resolutions to Amend Articles and BylawsApproval of Amendment to Articles of Incorporation

Approval of Restatement of Articles of Incorporation

Amendment of Articles

Approval of Amendment of Bylaws

Resolutions to Certify Board or Shareholder ActionsWritten Consent to Action Without a Meeting

Certifi cation of Board or shareholder Action

Affi davit of Corporate decision Making

Acknowledgment

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Amend Corporate Articles and Bylaws Page 2

Table of Contents

Introduction ...............................................................................................................................................................3

Why Key Corporate decisions should Be Recorded ..........................................................................4

How should Corporate decisions Be Recorded? .................................................................................6

Who should Use Th ese Forms? .....................................................................................................................8

When to Consult a Professional ....................................................................................................................8

Further Resources .............................................................................................................................................. 10

Resolutions to Amend Corporate Articles and Bylaws .................................................11

decide Whether to Amend Articles or Bylaws ...................................................................................12

Amending Your Articles of Incorporation ................................................................................................13

Amending Your Bylaws ................................................................................................................................... 25

Action by Written Consent ...................................................................................................................... 29

step 1. Check Bylaws for Your state’s Written Consent Rules ....................................................31

step 2. Prepare Written Consent Form .................................................................................................. 32

step 3. Place signed Consent Forms in Your Corporate Records Book ................................ 34

Certifi cation, Affi davit, or Acknowledgment of Corporate Decision Making ......................................................................................................... 35

Certifi cation of Board or shareholder Action .................................................................................... 36

Affi davit of Corporate decision Making ............................................................................................... 37

Acknowledgment of Corporate document ........................................................................................ 39

Appendix: Print-Only Forms ................................................................................................................... 40

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Introduction

Why Key Corporate Decisions Should Be Recorded ......................................................................4

How Should Corporate Decisions Be Recorded? ..............................................................................6

Real Meeting With Minutes ......................................................................................................................6

Paper Meeting With Minutes ..................................................................................................................6

Action by Written Consent .......................................................................................................................6

Who Should Use Th ese Forms? ...................................................................................................................8

When to Consult a Professional .................................................................................................................8

Further Resources ............................................................................................................................................ 10

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Introduction

F orming a corporation is an important, and sometimes exhausting, task. Typically, after the new entity is established, the owners take a deep breath and get back to doing what they do best—running the day-to-day

business operations. As a result, the owners often put o� dealing with the many tasks necessary to properly run their new corporate entity.

Leaving the care and feeding of your corpo rate legal entity undone is foolhardy. If you fail to properly document and support important tax decisions and elections, your corporation can lose crucial tax bene� ts. Even worse, the fact that you ignored your own corporate existence may result in its being similarly disregarded by the courts, with the risk that you may be held personally liable for corporate debts. And, of course, as time passes and memories fade, you may forget why important corporate decisions were made, and the extent of each director’s or shareholder’s participation in approval of these decisions. � is often leads to controversy and dissension, even in the ranks of a closely held corporation. � e use of written minutes, resolutions, and written consents, which record all important corporate decisions and the votes taken to approve them, helps avoid these potential blowups.

Or, to put all of this more positively, your � rst and best line of defense against losing the protection of your corporate status, while helping to ensure continued harmony among your directors and shareholders, is to document important corporate decisions. You can do this by preparing and maintaining proper corporate records. With the help of this kit, you can do most of this routine paperwork yourself, turning to a lawyer or accountant only when you need help with a complicated legal or tax issue.

Why Key Corporate Decisions Should Be Recorded� e good news is that you don’t need to document routine business decisions—only those that require formal board of directors or shareholder approval. In other words, you are not required by law or practice to clutter up your corporate records book with mundane business records about purchasing supplies or products, hiring or � ring employees, deciding to launch new services or products, or any of the host of other ongoing business decisions.

But key legal, tax, and � nancial decisions absolutely should be acted on by your board of directors and occasionally your shareholders. What kinds of decisions are considered key? � e proceedings of annual meetings of directors and shareholders, the issuance of stock to new or existing shareholders, the purchase of real property, the authorization of a signi� cant loan amount or substantial line of credit, and the making of important federal or state tax elections—these, and other key decisions, should be made by your board of

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Introduction

directors or shareholders and backed with corporate paperwork. � at way, you’ll have solid documentation in the event key decisions are questioned or reviewed later by corporate directors, shareholders, creditors, the courts, or the IRS.

� ere’s more good news about the task ahead of you. As you’ll learn, having your board of directors ratify important corporate decisions doesn’t necessarily mean dragging directors to a formal meeting, although this is one option. Corporate decisions can also legally be made over the phone, or by mail, fax, email or bulletin board conference, video conference, or any other practical means of communication among directors or shareholders. Usually, the directors or shareholders formally approve and document their decisions by passing a resolution—a short statement saying that the directors or shareholders have discussed the issues and resolved that a particular course of action has been decided upon, such as the selection of a new corporate � scal year. � ese resolutions are then included in written minutes for a corporate meeting or written consent forms signed by the directors or shareholders. If the consent form method is used, no meeting is held; instead, directors or shareholders sign a form that shows agreement to a particular transaction or decision.

Why bother to prepare minutes of meetings or written consents for important corporate decisions? Here are a few excellent reasons:

• Annual corporate meetings are required under state law. If you fail to payat least minimal attention to these ongoing legal formalities, you may losethe protection of your corporate status.

• Your legal paperwork provides a record of important corporate trans-actions. � is paper trail can be important if disputes arise. You can usethis paper trail to show your directors, shareholders, creditors, suppliers,the IRS, and the courts that you acted appropriately and in compliancewith applicable laws, regulations, or other legal requirements.

• Formally documenting key corporate actions is the best way to keepshare holders informed of major corporate decisions.

• Directors of small corporations commonly approve business transactionsin which they have a material � nancial interest. Your minutes or consentforms can help prevent legal problems by proving that these self-interested decisions were arrived at fairly, after full disclosure to the boardand shareholders.

• Banks, trusts, escrow and title companies, property managementcompanies, and other institutions often ask corporations to submit acopy of a board or shareholder resolution approving the transaction thatis being undertaken, such as a loan, purchase, or rental of property.

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Introduction

How Should Corporate Decisions Be Recorded? � ere are three basic ways to make and document formal corporate decisions and resolutions made by a corporation’s board of directors or shareholders. � ey are:

• real meeting with minutes• paper meeting with minutes, or• action by written consent.

It makes no di� erence which one you choose.

Real Meeting With Minutes

Your directors or shareholders and all interested parties get together in a real meeting and discuss and vote on items of corporate business. During or after the meeting, a secretary prepares written minutes showing the date, time, place, and purpose of the meeting and the decisions (resolutions) approved by the board of directors or shareholders.

Paper Meeting With Minutes

Under this procedure, the directors or shareholders informally agree to a speci� c corporate action or actions, such as the election of new directors. � en minutes are prepared as though the decision were approved at a real meeting of directors or shareholders. We call meetings of this sort paper meetings because the meeting takes place on paper only.

A paper meeting is often used by corporations that do not want to go to the trouble of holding a real meeting, but do want to maintain a corporate records history, complete with traditional formal minutes. While not speci� cally sanctioned under corporate statutes, a paper meeting with minutes is a common form of corporate documentation. It should present no problems as long as the decisions re� ected in the minutes of the paper meeting represent actual decisions reached by your board or shareholders. � is procedure is quite similar to taking action by written consent, discussed below, with one key di� erence: Formal minutes are prepared when a paper meeting is held.

Action by Written Consent

� is is the quickest and least formal way of taking formal corporate action. � e directors or shareholders consent to a decision or action in writing by signing a written consent form. Minutes for a real or paper meeting are not prepared. Only the written consent forms are kept in the corporate records book to indicate that directors and shareholders made necessary decisions.

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Introduction

CAUTIoN

Check your bylaws for the legal rules. Th e rules and procedures for holding formal meetings or obtaining the written consents of your directors or shareholders in lieu of a meeting should be stated in your bylaws. If you can’t locate your bylaws, or you’re not sure they are current, look up your state’s corporation law to fi nd your state’s requirements.

Each of the three ways of reaching and documenting formal corporate decisions has its own advantages. You’ll simply need to settle on the approach that best suits your corporation’s needs and the temperament of its directors and shareholders.

A real meeting allows the participants to meet face to face and arrive at decisions that require the give-and-take of conversation, argument, or persuasion engaged in by participants. A paper meeting, like a real meeting, also results in the preparation of formal minutes that document board or shareholder decisions, but does not require the time and e� ort involved in getting everyone together in a meeting. � e written consent procedure is the quickest and simplest of all, allowing the board or shareholders to agree to an uncontested item of business with a minimum of formality and paperwork.

Sometimes it will be clear that you really do need to hold a formal meeting. In other situations, it would be a waste of time to do so. Sometimes, any one or two, or even all three, approaches will serve you well. In other words, you can use whichever method works best under the circumstances.

Organize Your Corporate Records

Anyone who sets up a corporation needs to be able to quickly locate key organi-za tional documents. Because these are really the constitution of your corporation, you’ll refer to them again and again.

If you have not already done so, the best approach is to set up a corporate records book that contains the key documents. You can do this on your own with a three-ring binder, or by using a customized corporate kit designed for this purpose.

Your corporate records kit should contain:• articles of incorporation• bylaws• minutes of the fi rst directors’ meeting• stock certifi cate stubs or a stock transfers ledger showing the names and

addresses of your shareholders, as well as the number and types of sharesowned by each

• minutes of annual and special meetings of directors and shareholders, and• written consents.

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Introduction

Who Should Use Th ese Forms?� e information and forms in this kit are intended for smaller incorporated businesses. By “smaller,” we mean those that are privately owned (stock is not o� ered and sold to the public), with up to about 35 shareholders and 50 employees. A typical example is a family-owned business or one in which all stock is owned by several people. Similarly, this book is primarily directed toward businesses in which the people who own a signi� cant amount of stock are also actively involved in managing the business.

In other words, this is primarily intended for directors and shareholders who have a substantial degree of commonality of interest and vision for their smaller-sized corporation—people who routinely work together and can attend to necessary corporate procedures and record keeping without a great deal of controversy.

When to Consult a ProfessionalHolding corporate meetings and preparing standard resolutions and other corpo-rate paperwork are usually routine tasks for smaller, privately held corpo rations. But it is also a fact of business life that a particular corporate tax or corporate formality may present important legal, tax, or � nancial considerations.

Even professionals feel the need to consult other professionals in areas that are new to them; you should avail yourself of this commonsense business precaution as well. If the decision you are facing is complex, you anticipate any complications or objections, or you simply have questions and need more information, consult with a tax or legal specialist before using these forms. A consultation of this sort will be far more cost e� ective than making the wrong decision and having to � x it later. Besides, the fees you incur should be relatively low, since you’re not handing all the paperwork to the lawyer or tax person to do for you.

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Introduction

Th e Importance of Protecting Your Corporate Status

A corporation is a legal entity that is created and regulated by state laws. For legal, practical, and tax purposes, a corporation is legally separate from any of the people who own, control, manage, or operate it. If you want the advantages of having a corporation, you must follow legal requirements for running it. If you don’t abide by the rules, you could fi nd your business stripped of its corporate status—and the benefi ts of that status, such as:

• Limited liability. Corporate directors, offi cers, and shareholders usually arenot personally liable for the debts of the corporation. Th is means that if thecorporation cannot pay its debts or other fi nancial obligations, creditorscannot usually seize or sell a corporate investor’s home, car, or otherpersonal assets.

• Business taxes and fl exibility. A corporation is a separate taxable entity.Business income can be sheltered in the corporation among the owner-employees as they see fi t to reduce their overall tax liability.

• Employee fringe benefi ts. owner-employees of a corporation are eligiblefor deductible fringe benefi ts, such as sick pay, group term life insurance,accident and health insurance, reimbursement of medical expenses, anddisability insurance.

• Commercial loans and capital investment. lending institutions often givethe risk-conscious corporate borrower special preferences. Corporations candecide to raise substantial amounts of capital by making a public off ering oftheir shares.

• Business credibility. Corporations have an air of reputability about them.In other words, although placing an “Inc.” after your name will not directlyincrease sales, it forces you to pay serious attention to the structure andorganization of your business—something that is likely to improve allaspects of your business.

• Perpetual existence. A corporation has an independent legal existence thatcontinues despite changeovers in management or ownership. of course, likeany business, a corporation can be terminated by the mutual consent of theowners.

• Access to capital. Private and public capital markets prefer the corporateform over all other business forms, giving the corporation enhanced accessto private and public capital. Public off erings can be made by means ofa traditional underwritten initial public off ering (IPo) or a direct publicoff ering (dPo) of shares by the corporation itself to its client or customerbase.

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Introduction

Further Resources� e Corporate Records Handbook, by Anthony Mancuso (Nolo), is an excellentsource of back ground information on corporate decision making andrecordkeeping.

In addition, you can � nd other corporate kits on calling meetings, recording minutes and written consents, and preparing various resolutions on Nolo’s website at www.nolo.com, including:

• Corporate Minutes: Approve and Document Shareholder & DirectorDecisions

• Corporate Stock: Issue Shares and Pay Dividends

Corporations on the Web

We provide a wide range of resources on starting and running a corporation on Nolo’s website at www.nolo.com. Here you will fi nd a compilation of information on small businesses, including:

• corporate taxation• home-based businesses• accounting techniques• marketing strategies• hiring employees and independent contractors, and• commercial leases.

●

http://www.nolo.com/products/the-corporate-records-handbook-CORMI.html

http://www.nolo.com/products/corporate-minutes-CM1C3.html

http://www.nolo.com/products/corporate-stock-CM9C3.html

http://www.nolo.com/

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Resolutions to Amend Corporate Articles and Bylaws

Decide Whether to Amend Articles or Bylaws ................................................................................12

Amending Articles of Incorporation.........................................................................................................13

Reasons to Amend Articles of Incorporation ................................................................................13

overview of How to Amend Articles of Incorporation ...........................................................17

Resolution to Amend Articles of Incorporation ......................................................................... 20

File Certifi cate of Amendment With state Corporate Filing offi ce................................. 22

Amending Your Bylaws ............................................................................................................25

overview of Bylaws Amendments ..................................................................................................... 25

Resolution to Amend Bylaws ................................................................................................................ 26

Place Approved Resolution in Corporate Records Book ........................................................ 28

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M any, if not most, corporations eventually must undertake the commonplace legal procedure of amending their articles of incorporation and bylaws. To do so, the corporation must follow

rules in their state’s corporation laws.

TIP

Various names for articles of incorporation. While most states use the term articles of incorporation to refer to the basic docu ment creating the corporation, some states use the term certifi cate of incorporation, certifi cate of formation, or charter.

TIP

Shareholder approval is advised. Unlike most other corporate formalities which are approved by the board alone, shareholders often play a role in approving changes to articles and bylaws. As you’ll see below, shareholder approval is normally required for amendments to articles, but not bylaws. Whether legally required or not, we think amendments to both articles and bylaws are important enough to warrant discussion and approval by the board and shareholders. (of course, if you run a one-person corporation, putting on your shareholder hat to approve a board amendment is silly, unless separate shareholder approval is legally required.)

Decide Whether to Amend Articles or BylawsWhen you have the choice between adding new provisions to your articles or bylaws, it is best to add to your bylaws. Bylaws can be amended more easily and inexpensively than articles because amendments are not � led with the state’s corporate � ling o¡ ce.

EXAMPLE: � e board of Qui Vive Sentry Alarms Systems, Inc., wishes to impose a require ment that all shareholders be at least 18 years of age. In their state, shareholder quali� cations are not required to be placed in the articles. � e board decides to amend the bylaws to add this requirement.

To � nd out what provisions must be included in your articles of incorpo-ration, take a look at your state’s corporation law (available at a local law or business library or on the Internet through a link from your state’s home page). Typically, one section of the law lists the pro visions that must be included in articles. Another section usually lists provi sions that may be placed in articles; these are called optional arti cle provisions and may be placed in either your articles or bylaws. All other provisions may be placed in a bylaws amendment.

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How to Select and Use Corporate Resolutions

• scan the table of contents at the beginning of the kit to fi nd resolutions ofinterest to you.

• Read the background material that precedes each pertinent corporateresolution.

• Follow the instructions included with the sample resolution to complete theresolution.

• Complete any needed attachment forms, such as account authorization formsor lease agreements.

• If a resolution involves complex issues that will benefi t from expert analysis, haveyour legal or tax adviser review your paperwork and conclusions.

• Prepare minutes of a meeting or written consent forms and insert thecompleted resolu tion(s) in the appropriate form. If you’re seeking shareholderapproval in addition to board approval, prepare two sets of minutes or writtenconsent forms—one for your directors and one for your shareholders.

• Have the corporate secretary sign the printed minutes and have directors and/orshareholders sign any written consent forms and waivers. Th en place the signedforms, together with any attachments, in your corporate records book.

Amending Your Articles of IncorporationFrom time to time, corporations may need to amend their original articles of incorporation to add, change, or delete provisions. Like the original articles, amendments to the articles must be � led with the state’s corporate � ling o¡ ce, accompanied by a � ling fee.

Reasons to Amend Articles of Incorporation

Corporations often amend their articles of incorporation because they wish to:• authorize additional shares of an existing class or series of stock• authorize the creation of a new class or series of stock• change the name of the corporation• add additional provisions to the articles, such as limitations on the

personal liability of directors and o¡ cers, or• delete provisions that the corporation wishes to repeal or that list

outdated information—for example, the name of the corporation’s initialregistered agent.

Let’s look at each of these areas in detail.

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Adding Shares

When you incorporate, you authorize at least enough shares to issue to your initial shareholders. Incorporators with foresight authorize additional shares, which are available to issue to new shareholders later. Of course, 20-20 foresight is not always achievable, so you may � nd that you need to amend your articles to issue additional shares to new investors or to permit shares to be issued as part of an employee stock bonus or option plan.

EXAMPLE: Sonic Sound Systems Corp.’s original articles of incorporation stated: “� e aggregate number of shares that the corporation shall have authority to issue is 100,000 shares of common stock.” A total of 80,000 shares were issued to the corporation’s four shareholders, but the corporation now wishes to sell an additional 10,000 shares to each shareholder. Before issuing the shares, this article must be amended to authorize the issuance of at least 120,000 shares altogether. It would be prudent to provide an extra cushion of shares, this time by authorizing the issuance of a total of 300,000 shares.

If you wish to issue more shares than the amount currently authorized in your articles, you must amend your articles to authorize the additional shares. (We provide a resolution to amend your articles and sample language below.)

Creating a New Class of Shares

If you decide to authorize a new class or series of shares that is not currently authorized in your articles—such as Class B nonvoting shares that will be issued to employees as part of a stock option plan or shares that will be issued to nonvoting investors who will contribute additional capital to your corporation—you’ll need to add additional language to an existing article or add a new article that authorizes the new class or series of shares. (We provide a resolution to amend your articles and sample language below.)

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Do You Need a Permit to Issue New Shares?

Th e off ering and issuance of new shares in your corporation are regulated by the securities laws of your state and by the federal securities Act. You will typically either need to qualify for an exemption from these securities laws or obtain a permit from your state’s securities offi ce or the federal securities and exchange Commission prior to issuing new shares.

Fortunately, federal rules and most state administrative regulations provide exemptions (usually called small off ering exemptions) that allow small corporations to issue shares privately to a limited number of people. Th ese exemptions allow shares to be off ered and issued privately (without advertisement) to a limited number of investors, typically 35 or fewer.

For information on qualifying for small off ering exemptions, see Incorporate Your Business, by Anthony Mancuso (Nolo).

Changing Your Corporate Name

� e formal name of a corporation is speci� ed in its articles of incorporation. When a corpo ration changes its focus, product line, or primary business activity, it sometimes decides to change its corporate name. � e business corporation laws of all states allow corporations to do this, although most corporations opt to retain their original corporate name and simply do business under a � ctitious or assumed name.

Under corporate laws, your new proposed corporate name must be available for your use with the state corporate � ling o¡ ce. Mostly, this means it must not be the same or similar to a name already on the state’s corporate � ling list of existing corporations formed in the state or registered to do business in the state. In many states, the availability of the new name can be checked over the phone by calling the state corporate � ling o¡ ce or by going online to the state corporate � ling o¡ ce’s website. In other states, you must send a name availability letter to that o¡ ce asking if the proposed new name is available for use. We recommend that you request a name reservation (and provide the required fee)—if the name is available—at the same time that you inquire on a name’s availability. � is way, you can be sure that the name will not be grabbed by someone else between the time of your name availability check and the time you � le an amendment to your articles. (We provide a resolution to amend your articles and sample language for changing a corporation’s name below.)

http://www.nolo.com/products/incorporate-your-business-NIBS.html

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TIP

Make sure the new corporate name is not a trademark or service mark. don’t forget that you may also need to check to make sure that the new name is not registered as a state or federal trademark or service mark. For an explanation of trademark and service mark law, and the steps to take to search for existing trademarks or apply for one of your own, see Trademark: Legal Care for Your Business & Product Name, by stephen elias (Nolo).

Do You Need a Permit to Issue New Shares?

If you’re planning to amend your articles to change your corporation’s name, either to better identify your business or to benefi t from a name that has become associated with your corporation’s products or services, there’s an easier way to change the name.

In most states, a corporation wishing to do business under a name diff erent from that specifi ed in the articles may fi le a fi ctitious or assumed business name statement with the state corporate fi ling offi ce or local county clerk’s offi ce. Th is simple procedure allows the corporation to use the name locally without having to fi le a formal articles amendment with the state corporate fi ling offi ce. (A resolution for adopting an assumed or fi ctitious corporate name is contained in Nolo’s eFormKit, Corporate Minutes: Approve & Document Shareholder & Director Decisions, available for download at www.nolo.com.)

Adding Provisions to Your Articles

Under state law, a short list of provisions must always be included in a corpo-ration’s articles, such as the name of the corporation, the number of shares it is authorized to issue, and the name and address of the corporation’s registered agent.

After incorporation, the directors may decide to amend the articles to include one or more additional provisions. Amendments to articles are normally technical in nature—for example, adding a provision that makes shareholders liable to pay annual assessments on their shares, or a redemption provision that allows the corporation to buy back a special class of shares at its option. You will probably wish to check your language with your legal or tax adviser before approving the amendment.

� e following are typical optional provisions that may be added to articles of incorporation:

http://www.nolo.com/products/trademark-TRD.html


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• limitation of the liability of directors in lawsuits brought by or in thename of the corporation (in shareholder lawsuits)

• addition of greater-than-majority quorum or voting requirements fordirectors or shareholders

• authorization of assessments (special monetary charges) against shares• addition of special quali� cations for shareholders• limitations on the duration, business, or powers of the corporation, and• granting of voting rights to creditors of the corporation.

You Can’t Change Certain Article Provisions

In most states, you can delete—but cannot change—article provisions that specify the initial agent, initial registered offi ce, or initial directors of the corporation. Th e reason is simple: Th ese people and this address always remain the initial agent, directors, or registered offi ce. You may delete any reference to them—for example, if you are amending your articles to increase the number of authorized shares and decide to take out the reference to your fi rst registered agent, who has been replaced.

To notify the corporate fi ling offi ce of any change in your registered agent or registered offi ce, fi le a statement of change of agent or registered address. If you request it, most states provide a form to use for this purpose.

Deleting Provisions in Your Articles

You may decide to repeal a provision in your articles—for example, one that requires directors to pass resolutions at meetings by a three-quarters vote of the full board. Or you may wish to delete outdated information, such as the name of the corporation’s initial registered agent and o¡ ce (if a new agent with a new o¡ ce has recently been named and the directors are amending the articles foranother reason). Deletions, like additions or changes to articles, must be madeby formal amendments to the articles and must be approved by the board andshareholders and � led with the corporate � ling o¡ ce, as explained below.

Overview of How to Amend Articles of Incorporation

Here are the general rules for proposing and approving amendments to articles of incorporation.

Who Proposes Amendments to Articles

Under most bylaws, the directors propose and vote on amendments to the articles of incorporation; after the directors approve the amendment, it is

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passed along to the shareholders for their rati� cation. Under other bylaws, the shareholders propose and vote on the amendment � rst, then the board rati� es the shareholder amendment. Check your bylaws to determine the procedure you should follow.

Who Must Approve Amendments to Articles

For most amendments to articles of incorpo ration, you’ll need to obtain approval of both the board of directors and the share holders. We always recommend this approach, even when it is not legally required.

Under many bylaws and state laws, the board alone may approve certain routine article amend ments without obtaining shareholder approval. Here are some of the routine board-only article amendments that many bylaws and state laws and bylaws allow:

• deletion of names and addresses of the directors of the corporation (notethat in a small number of states, the names of the initial directors namedin the articles may not be deleted from the articles until the corporationhas � led its � rst annual report with the state corporate � ling o¡ ce)

• deletion of the name and address of the initial registered agent of thecorporation

• if the corporation has only one class of shares, conversion of each shareof the corporation into a greater number of whole shares (in other words,a stock split, where each share is converted into a greater number ofshares—in a two-for-one stock split, 100 shares become 200 shares)

• change of only the corporate or geographical designator in the corporatename—for example, changing “Specialty Tools of Chicopee, Inc.” to“Specialty Tools of Chicopee Corp.” or to “Specialty Tools of Pitts� eld,Inc.,” and

• approval of restatements of the articles; restatements simply consolidatethe original articles plus all past amendments into one � nal document.

TIP

Take the easy way out. If your bylaws are unclear, or you want to avoid having to look up or ask a lawyer about the legal rules for amending articles, have both directors and shareholders approve all amendments to your articles. Th is is the normal rule anyway under state law, and, by doing this, you’ll keep everyone informed about changes to the articles of incorporation, your corporation’s primary legal document.

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Approval of Amendments If Shares Have Not Been Issued

If shares have not yet been issued, take note of these common rules:• Most states allow the directors alone to approve an amendment to the

articles.• If directors have not been named in the articles or appointed by the

incorporators (the persons who signed the articles), normally theincorporators may approve an amendment to the articles.

As always, check your bylaws (and state law) for the rules that apply to your corporation.

Special rules may apply if your corporation has more than one class of shares, as would be the case if you issued Class A voting shares to the founders and Class B nonvoting shares to employees under a stock bonus or pro� t-sharing plan. Under state law, separate approval by any special class of shares (including nonvoting shares) is often required if a proposed amendment to the articles would a� ect the class of shares separately—for example, increase, decrease, or change the rights or restrict the classes of shares.

EXAMPLE: An amendment to Quotidian Time Manage ment Consulting Corporation’s articles would add restrictions on the transferability of Class B nonvoting shares of the corpora tion by requiring unanimous approval of shareholders prior to the transfer of a portion of shares by an exiting shareholder to an outsider. A majority (or, in some states, two-thirds) of all of the Class B shares must approve the proposed amendment.

� e types of proposed changes to a class of shares that will trigger a separate class vote by the shareholders vary from state to state.

Separate voting procedures also may be required for amendments that:• create a new class of shares having prefer ences or privileges that supersede

those of an existing class, or• increase the preferences of a class that already has preferences over

another class of shares.

EXAMPLE: Yer Blues and Cappuccino Corp., a fran chiser of espresso cafés featuring live musical entertainment, decides to issue a new class of preferred shares to an investment group in return for an infusion of cash. � e new shares entitle their holders to preference in receiving dividends that may be declared by the board and a � rst right to any remaining corporate assets if the business is liquidated. Because the new preferred

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shares are being granted rights that supersede the rights of existing shareholders, the existing share holders must approve the resolution authorizing the new shares.

Notice Required to Amend Articles

Most bylaws require that a notice of share holders’ meeting must contain a description of the articles of incorporation amendment to be presented at the meeting.

Votes Required to Amend Articles

Voting requirements for amendments to articles vary from state to state. We discuss the basic rules below, but remember: In the typical small corporation, most or all shareholders normally concur in any article amendment brought up for passage.

• Board of directors: Most states allow the board to approve amendments tothe articles by normal board voting rules—that is, by a majority of thosepresent at a board meeting at which a quorum is present.

• Shareholders: A majority of states require amendments to be approved byat least a majority of all the shares of the corporation entitled to vote onthe amendment.

A lesser number of states requires the approval of two-thirds of all theshares of the corporation entitled to vote on the amendment.

A handful of other states requires a two-thirds shareholder vote foramendments to the articles but allow certain corporations—for example,those with a large number of shareholders or those listed with a securitiesexchange—to pass an amendment by a majority vote of all shareholders.

TIP

In some states, the two-thirds vote requirement may be lowered in the articles. some states that specify a two-thirds vote approval by the corporation’s shareholders allow the articles to lower this requirement to a majority shareholder vote. Again, check your articles and bylaws to see if your corporation has adopted any special voting requirements for amendments to the articles.

Resolution to Amend Articles of Incorporation

It’s easy to prepare a resolution to amend your articles, which you’ll then insert in your minutes or written consent form. � e resolution can show approval of:

• only the speci� c language that you wish to change (see “Resolution toAmend Articles,” below), or

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• a restatement of your entire articles—which, of course, includes anychanges you are making (see “Resolution to Restate Articles,” below).

Remember, most article amendments must be approved separately by the board and the shareholders. To obtain this approval, you’ll need to hold separate directors’ and share holders’ meetings or obtain separate director and shareholder written consents.

Resolution to Amend Articles

You may use the form shown below to make one or more speci� c amendments to your articles of incorporation. Because you are not changing the entire text of your articles, make sure you attach a copy of the new approved resolution to the current articles in your corporate records book.

Fill out the resolution titled Approval of Amendment to Articles of Incorporation as you follow the sample and special instructions below.

Approval of Amendment to Articles of Incorporation

Resolved, that Article [number or letter of article that is being amended, added, or deleted] of the articles of incorporation be [“amended to read,” “added,” or “deleted”] as follows: [insert the language of the changed or new article, or show a struck-through version of the wording to be deleted].

Special Instructions

Here are a few examples of ways to complete the information in these blanks. For back ground information on each of these areas, see “Reasons to Amend Articles of Incorporation,” above.

Adding Shares

“Resolved, that Article FIve of the articles of incorporation be amended to read as follows: Th e aggregate number of shares that the corporation shall have authority to issue is 150,000 shares of common stock.”

Creating a New Class of Shares

“Resolved, that Article eIGHT of the articles of incorporation be amended to read as follows: Th e corporation shall be authorized to issue 200,000 Class A voting common shares and 100,000 Class B nonvoting common shares.”

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Changing the Corporate Name

“Resolved, that Article oNe of the articles of incorporation be amended to read as follows: Th e name of this corporation is Atlanta Big Wheels, Inc.”

Adding a New Article

“Resolved, that Article TeN of the articles of incorporation be added as follows: one member of the corporation’s board of directors shall be elected annually by the Hingham Investment Group, with the initial election date to be determined by the board of directors.”

Deleting an Article

“Resolved, that Article B of the articles of incorporation be deleted as follows: Th e initial registered agent and registered offi ce of this corporation is: Paul Winslow, 55 Pomme Rouge Boulevard, lafayette, Kentucky.”

Resolution to Restate Articles

To avoid confusion, directors and shareholders sometimes decide to approve a restatement of the articles, which contains all old and new provisions (minus any deletions also being made).

Below is a sample of the Approval of Restate ment of Articles resolution. Fill out the resolution as you follow the sample below.


Resolved, that the articles of incorporation be amended and restated as follows: [insert the entire text of your articles, including any new or changed provisions that are being incorporated into your articles and omitting any provisions that are being deleted].

File Your Certifi cate of Amendment With the State

Following approval of a resolution to amend your corporate articles, you’ll need to � le an amendment of articles form with your state’s corporate � ling o¡ ce. A sample, specimen, or printed form for this purpose should be available from the corporate � ling o¡ ce in your state; you should be able to download your secretary of state’s form from your state’s home page on the Internet. Typically,

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the amendment form is referred to as an amendment of articles or certi� cate of amendment form. A nominal fee is usually charged for the � ling.

� e sample form below contains the basic information normally required in an amendment of articles. It shows the text of the amended or restated articles and how, when, and by whom the amendment was approved.

After � ling your amendment form with your state’s corporate � ling o¡ ce, remember to place a copy in your corporate records book, along with a copy of the written consents or minutes of the meeting used to show approval of your amendment resolution.

We include a specimen statutory amendment form titled Amendment of Articles Form—although you should use the form provided by your state’s corporate � ling o¡ ce, if one is available.

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Introduction


To:

Articles of Amendment

of

One: � e name of the corporation is .

Two: � e following amendment to the articles of incorporation was approved by the board of

directors on and was

approved by the shareholders on :

� ree: � e number of shares required to approve the amendment was ,

and the number of shares that voted to

approve the amendment was .

Date:

By:

, President

, Secretary

[corporate fi ling offi ce name and address]

[name of corporation]


[date of board meeting or written consent]

[date of shareholder meeting or written consent]

[language of amendment to one or more articles here]

[total number of

shares required for approval]

[number of shares voting in favor of the amendment]

[signature of president]

[typed name]

[signature of president]

[typed name]

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Amending Your BylawsCorporations sometimes wish to add, delete, or change provisions in their bylaws. � is is easy to do, because bylaws amendments simply need to be approved by the appropriate number of director or shareholder votes (as explained below), then � led in the corporate records book. Unlike articles, amendments to bylaws do not need to be � led with the state’s corporate � ling o¡ ce.

You may wish to amend your existing bylaws to accomplish one or more of the following items:

• change the date, time, or place of the annual directors’ or shareholders’meeting speci� ed in the bylaws

• specify special notice, call, or voting rules for annual or special meetingsof directors or shareholders—for example, your direc tors may wishto require written notice well in advance of all meetings, even if notrequired under state law

• change the authorized number of directors of the corporation (the totalnumber of positions on the board)

• change the duties and responsibilities of one or more corporate o¡ cers, or• add provisions to the bylaws that specify when and for how much shares

may be sold by existing shareholders to other share holders or to outsiders(called buy-sell provisions).

Overview of Bylaws Amendments

Now, let’s review what requirements normally must be met to amend corporate bylaws.

Who Must Approve Bylaws Amendments

In most states, certain amendments to the bylaws need to be approved by directors only. But even if rati� cation (approval) by share holders is not required, we think this extra step is well worth the time and trouble. After all, the bylaws are an important operational document, and shareholders—as well as directors —will have to abide by the rules contained there. Unless you are pressed for time (or you run a small corporation where all share holders are directors), have your shareholders ratify all amendments approved by the board.

While not common, it’s possible that your articles or bylaws reserve the power to amend bylaws exclusively for the shareholders (either in general or for speci� c types of amend ments). As always, check your articles, bylaws, or state corporation laws to determine your state’s rules.

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Notice Required to Amend Bylaws

Because bylaws amendments may represent a major change in corporate regula-tions or procedures, we recommend that all notices of meetings at which a bylaws amendment will be proposed state that the purpose of the meeting is to amend the bylaws. In addition, it’s helpful to provide a copy or summary of the amendment that will be brought before the meeting.

Generally, no special notice to directors is required when a bylaws amend-ment is proposed—amendments can be made at any directors’ meeting. Of course, we recom mend you give directors advance notice of any proposals to make important bylaw amendments.

Under typical state corporate laws, written notice of all special shareholders’ meetings must state the nature of the business to be proposed for approval at the meeting. Because bylaws amendments are normally taken up at special meetings called during the year, this statement of purpose would be a legal requirement.

Votes Required to Amend Bylaws

Normal voting rules apply to bylaws amendments unless other provisions are speci� cally required by law or the corporation’s articles or bylaws. Amendments generally are approved by a majority of directors or shares present at a meeting or by the written consent of all directors or all shareholders.

Resolution to Amend Bylaws

To approve an amendment to your bylaws by directors, shareholders, or both, insert the amendment of bylaws resolution into your minutes of meeting or written consent forms. Include in the resolution the language of the new or changed bylaws provision, as shown in the sample below.

Fill out the resolution titled Approval of Amendment of Bylaws as you follow the sample and special instructions below.


For deleted provisions, indicate that the bylaw is “deleted as follows,” then insert a struck-through version of deleted language. To add or amend provisions, � ll in the appropriate language.

EXAMPLE 1: “RESOLVED, that Article TWELVE of the bylaws of the corporation is added as follows:

“Article TWELVE: Nontransferability of Shares. All shares of this corporation shall be nontransferable, except with the written approval of all existing shareholders.”

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EXAMPLE 2: “RESOLVED, that Article II, Section A (3) of the bylaws of the corporation is amended as follows:

“Article II: Meetings of the Board of Directors“Section A (3): � e board of directors of this corporation shall meet annually on the � rst Wednesday of June of each year, and shall also meet on the same day as, and immediately following, the annual shareholders’ meeting provided for by other provisions of these bylaws.”


Resolved, that [number and/or letter designation of amended bylaw] of the

bylaws of the corporation is [“added,” “amended,” or “deleted”] as follows:

[insert language of new or changed bylaw or show a struck-through version of the

wording to be deleted].

Supermajority Quorum and Voting Rules in Bylaws

To increase the consensus for major decisions, some smaller corporations adopt a rule that requires a greater-than-majority—for example, two-thirds—director or shareholder quorum or vote to approve specifi c changes to the corporation’s bylaws (and article of incorporation changes as well). For example, a two-thirds director and shareholder vote at meetings may be required to authorize a new class or series of shares or to decrease the number of directors on the board. Th ese provisions are known as supermajority quorum or voting rules.

Typically, states allow the bylaws to increase director or shareholder quorum or voting requirements. However, exceptions do exist, particularly with respect to raising the quorum or voting requirements for shareholders. In some states, supermajority shareholder quorum or voting rules may only be included in the bylaws if the articles of incorporation specifi cally allow it.

once enacted, it is typical to require a corresponding supermajority shareholder quorum or vote to repeal or change a super majority shareholder quorum or voting rule (for example, a two-thirds shareholder vote would be necessary to repeal a two-thirds shareholder voting rule in the bylaws). Check your articles and bylaws carefully if you wish to add, delete, or change shareholder supermajority quorum or voting rules.

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Place Approved Resolution in Your Corporate Records Book

After your directors (and, if you wish, shareholders) have approved the resolution amending your bylaws, place a copy of the resolution in your corporate records book and attach a copy of the resolution to the back of your current bylaws (also in your corporate records book).

As an alternative, you may have the corporate secretary prepare an updated copy of your bylaws that contains the language of the bylaws. Of course, this updated copy should replace the old copy of the bylaws in your corporate records book. You can keep the old version in your corporate records book, but mark it clearly as “AMENDED” or with other language that indicates it has been superseded by new provisions. ■

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Step 1. Check Bylaws for Your State’s Written Consent Rules ...............................................31

Step 2. Prepare Written Consent Form .............................................................................................. 32

Step 3. Place Signed Consent Forms in Your Corporate Records Book .......................... 34

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S tate statutes allow directors and share holders of a corporation to take action without holding a meeting by signing written consent forms. Basically, all of the shareholders or directors sign a piece of paper that

contains the language of the decision (resolution) to be approved.Using written consents for corporate decision making is often appropriate

for small corpo rations with only a few shareholders or direc tors. It’s sometimes even suitable for slightly larger organizations that have a deadline for making a decision and don’t have time to assemble the board of directors or shareholders at a special meeting.

Action by written consent is most appropriate if the issue at hand is a routine tax or � nancial formality; for instance, the approval of standard loan terms o� ered by the corporation’s bank or the approval of a tax election recommendedby the corporation’s accountant. It is not appro priate where a decision mayengender debate or disagreement among directors or shareholders.

In the steps below, we discuss the legal rules related to taking action by written consent. We provide a sample form with instructions that you can follow as you � ll out the Written Consent to Action Without Meeting form. You’ll see that it only takes a minute or two to � ll out this form, which must then be distributed to your directors or shareholders for signing.

When to Use Minutes of Paper Meetings Instead of Written Consents

even small corporations usually prepare minutes of a real or paper meeting to docu -ment the decisions made at annual directors’ and shareholders’ meetings. Th ese take a little more time to prepare but look more convincing and offi cial in the corpo rate records book. Minutes forms are available at www.nolo.com in the eFormKit Corpo-rate Minutes: Approve and Document Share holder & Director Decisions.

You can safely use written consents to show the approval of the type of decisions typically made at special directors’ or shareholders’ meetings that would otherwise be documented by preparing minutes of a special directors’ or shareholders’ meetings.

TIP

Provide written consents to absent directors or shareholders. Written consent forms also come in handy when a director or shareholder is not able to attend an important corporate meeting. even if you obtain a quorum and therefore legally approve decisions at a meeting, it’s wise to get the written consent of any nonattending directors or shareholders, especially where important resolutions are adopted. doing this ensures that all directors or shareholders are informed of actions taken at the meeting, and it provides clear evidence of their assent to the action taken.


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Step 1. Check Your Bylaws for Your Written Consent Rules

Start by checking your bylaws to determine your corporation’s rules for taking action by written consent. Your bylaws should mirror state law rules for written consents. � e most common provision is that directors and shareholders can take action without a meeting only if there is unanimous written consent. Some states do, however, allow fewer than all shareholders to approve decisions by written consent as explained below.

Rules for Directors

Most states have a corporate statute speci� cally authorizing director action by written consent (without a meeting). Usually, the written consent of all directors is required. � erefore, if you think that one or more directors may object to the director action or resolution, you need to hold a meeting to approve the matter.

Rules for Shareholders

Most states allow shareholder action by written consent. A majority of states require unanimous shareholder consent to the action—in other words, all shareholders entitled to vote on a matter must sign the consent form. Some states allow approval by less than unanimous written consent of shareholders. For example, in some states the number of shareholders required to sign the consent form can be the same as the number of shareholders owning or representing the shares required for passage of the action at a meeting at which all shareholders are present. But even in these states, unanimity for special shareholder actions, such as an increase in the stock or indebtedness of the corporation, may be required. As always, check your bylaws for the shareholder written consent rules in your state. If you’re not sure your bylaws have all the state rules, then check your state laws as well.

You may live in a state with other rules, such as one that allows less than unanimous written consent by shareholders in all matters except the election of directors. Again, check your bylaws (and state laws, if necessary) for the speci� c shareholder written consent rule in your state.

CAUTIoN

Have all directors or shareholders sign a consent form. We recommend that you always obtain the unanimous written consent of all directors or shareholders. doing so not only ensures that you will meet the most stringent bylaw and state law requirements for director or shareholder written consents but also gives notice to every director and shareholder of the decision. Regardless of the legal requirements, if you

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How to Take Action by Written Consent Without a Meeting

expect opposition to a decision by one or more directors or shareholders, it makes sense to hold a meeting to discuss these diff erences and obtain a vote on the issue instead.

Step 2. Prepare the Written Consent FormBelow is a sample of the Written Consent to Action Without Meeting form. Fill it out following the special instructions provided.


1 Indicate whether the consent form for approval of action taken without a meeting is for your directors or share holders. If you want both the directors and shareholders to approve a given action, prepare separate forms.

2 Insert a description of the actions or decisions agreed to by the directors or share holders, in the form of a resolution. If you wish to approve a matter not covered by one of our resolutions, insert your own resolution language in the consent form. You don’t need to use fancy or legal language for your resolution; just describe as speci� cally as you can the transaction or matter approved by your board or shareholders in a short, concise statement. Normally, resolutions start with a preamble of the following sort: “� e (board or shareholders) resolved that…,” but this is not required. � e following are examples of resolution language:

Bank loan

Th e board resolved that the treasurer be authorized to obtain a loan from [name of bank] for the amount of $ on terms [he/she] considers commercially reasonable.

Corporate hiring

Th e board approved the hiring of [name of new employee], in the position of [ job title] at an annual salary of $ and in accordance with the terms ofthe corporation’s standard employment contract.

Tax year

Th e board decided that the corporation shall adopt a tax year with an ending date of March 31 and directed the appropriate offi cers to fi le the required IRs forms.

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1

2

3

[“shareholder(s)” or director(s)”]


Written Consent to Action Without a

� e undersigned of

hereby consent(s) as follows:

Dated:

Signature Printed Name

Meeting

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Th e shareholders resolved that the following new article be added to the corporation’s articles of incorporation: [language of new article].

If you need to draft your own resolution language and have trouble doing so, or if the matter has important legal or tax consequences, you may wish to turn to a lawyer or accountant for help.

3 Date the consent form and have your directors or shareholders sign their names. If you have only a few directors or shareholders, it may be easiest to prepare one master consent form to be passed around to each of your directors or shareholders to sign. In this case, date the form as of the date of the � rst signature. Another method, more appropriate when you have a larger number of directors or shareholders, is to prepare a separate consent form for each director or shareholder to date and sign. Either method works.

ReMINdeR

Signing reminder. We recommend that you have all directors or all shareholders sign the consent form. However, if your bylaws allow your shareholders to take action by less than unanimous written consent, you can have a lesser number of the group sign the form as long as you are comfortable doing so.

Step 3. Place Signed Consent Forms in Your Corporate Records Book

After distributing your written consent forms and obtaining the signatures of your directors or shareholders, make sure to place each completed form in your corporate records book. It’s common to place these papers in the minutes section of the corporate records book, arranged according to the date of the action by written consent.■

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Certifi cation, Affi davit, or Acknowledgment of Corporate Decision Making

Certifi cation of Board or Shareholder Action ................................................................................ 36

Affi davit of Corporate Decision Making ............................................................................................ 37

Acknowledgment of Corporate Document ..................................................................................... 39

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Y our corporate employees (including o¡ cers) or directors may need to certify to others that a given corporate decision, act, or document was approved by your board or shareholders in accordance with state law and

the operating rules of the corporation. For example, prior to obtaining a loan, a bank may require the secretary to certify that the board of directors approved the loan.

We provide three forms a director or employee may use to make this showing. None of the forms is a resolution. � e � rst two forms are ways to validate or certify a resolution that is attached to or quoted in the form; the third is a legal statement that can be added to the end of another legal document, such as a contract.

Certifi cation of Board or Shareholder Action

� e following form is used by the corporate secretary to certify to outsiders that an act by the board or shareholders was properly made. � is is the least formal of the three forms in this section, and the most common way this type of action is taken.

Fill in the form titled Certi� cation of Board or Shareholder Action as you follow the sample and special instructions below.


1 Although it is most common for the secretary to sign this form, any o¡ cer or director can do so. Show the title of the o¡ cer or director who iscertifying the corporate decision.

2 Attach a copy of the board or shareholder resolution or written consent form to this form before submitting it to the bank or other institution that has requested the certi� cation. Remember to place copies in your corporate records book.

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Certifi cation of Board or Shareholder Action

Th e undersigned, duly and acting [“secretary” or title of other offi cer] 1 of [nameof corporation], certifi es that the attached resolution was adopted by the [“directors” or “shareholders”] as follows:

■■ at a duly held meeting at which a quorum was present, held on .[If the resolution was approved by written consent, check above box andinsert date of fi rst written consent obtained for approval of resolution]

■■ by written consent(s) dated on or after[If the resolution was approved by written consent, check above box andinsert date of fi rst written consent obtained for approval of resolution]and that it is a true and accurate copy of the resolution, and that theresolution has not been rescinded or modifi ed as of the date of thiscertifi cation. 2

date:

signed:

Name/Title: [“secretary” or title of other offi cer]

Affi davit of Corporate Decision Making

A more formal way for the corporate secretary to certify that a particular corporate decision was approved by the board or shareholders is through the use of an a¡ davit. � is is a sworn statement, signed in the presence of a notary, that attests to the truth of statements made in the a¡ davit. � e language for a¡ davits varies from state to state, but a typical a¡ davit follows the format of the form shown below.

Fill in the form titled A¡ davit of Corporate Decision Making as you follow the sample below.

CAUTIoN

Check your state’s notarization form. Before using this form, ask a notary in your state for a copy of your state’s affi davit language. To make sure this form conforms to your state’s notarization language, make any necessary modifi cations to the notary sections of the form before using it. Normally, you won’t have to make many changes.

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[title]

[name of corporation] [name of state]

[“directors” or “shareholders”]

[if the resolution was approved at a meeting, check the box above and insert date of meeting]

[if the resolution was approved by written consent, check the box above and insert date of fi rst written consent obtained for approval of resolution]

[insert language of resolution here]

[signature of offi cer or director taken in the presence of Notary]

[signature of Notary Public]

[date] [notary’s name]

[name of employee, offi cer, or director]

Title:

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Acknowledgment of Corporate Document

A corporate employee or director may be asked to acknowledge a legal document, such as a lease or deed. An acknowledgment states that the person is who he or she claims to be and that he or she actually signed the document in question. Acknowledgments, like a¡ davits, are often required to be given in the presence of a notary.

Following is a sample of the acknowledgment form that can be attached to the end of a legal document signed by a corporate employee or director.

Fill in the form titled Acknowledgment as you follow the sample below.

●

[date] [notary’s name]

[name of employee, offi cer, or director]

[signature of Notary Public]

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Amend Corporate Articles and Bylaws

Appendix: Print-Only Forms

Resolutions to Amend Articles and BylawsApproval of Amendment to Articles of Incorporation




Resolutions to Certify Board or Shareholder ActionsWritten Consent to Action Without a Meeting

Certifi cation of Board or shareholder Action

Affi davit of Corporate decision Making

Acknowledgment



Resolved, that Article of the articles of incorporation be

as follows:



Resolved, that the articles of incorporation be amended and restated as follows:

Amendment of Articles Form


To:

Articles of Amendment

of

one: The name of the corporation is .

Two: The following amendment to the articles of incorporation was approved by the board of

directors on and was approved by the shareholders on

:

Three: The number of shares required to approve the amendment was ,

and the number of shares that voted to approve the amendment was .

date:

By:

, President

, secretary



Resolved, that of the bylaws of the corporation

is as follows:

Written Consent to Action Without Meeting

Written Consent to Action Without a Meeting

The undersigned of

hereby consent(s) as follows:

dated:

signature Printed name

Certification of Board or Shareholder Action

Certification of Board or Shareholder Action

The undersigned, duly elected and acting of

, certifies that the attached resolution

was adopted by the as follows:

[ ] at a duly held meeting at which a quorum was present, held on

[ ] by written consent(s) dated on or after

and that it is a true and accurate copy of the resolution, and that the resolution has not been

rescinded or modified as of the date of this certification.

dated:

signed:

Name/Title:

Afficavit of Corporate Decision Making

NoTARY seAl

Affidavit of Corporate Decision Making

sTATe oF

CoUNTY oF

on before me,

, a notary public, personally appeared

,

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are

subscribed to the within instrument and acknowledged to me that he/she/they executed the same

in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument

the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PeNAlTY oF PeRJURY under the laws of the state of California that the foregoing is

true and correct.

1. That he/she is the duly elected and acting of

, a corporation.

2. That the following is a true and correct copy of a resolution duly approved by the

of the corporation, as follows:

■■ at a duly held meeting at which a quorum was present, held on .

■■ by a sufficient number of written consents dated on or after .

3. That the above resolution has not been rescinded or modified as of the date of this affidavit.

signed:

Name/Title:

sworn to and subscribed before me this day of , 20 .

Notary Public:

My commission expires:

Acknowledgment

Acknowledgment

sTATe oF

CoUNTY oF

on before me,

, a notary public, personally appeared

,

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are

subscribed to the within instrument and acknowledged to me that he/she/they executed the same

in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument

the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PeNAlTY oF PeRJURY under the laws of the state of California that the foregoing is

true and correct.

sworn to and subscribed before me this day of , 20 .

Notary Public:

My commission expires:

NoTARY seAl

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