By Louis Lehot, business lawyer and partner at Foley & Lardner LLP in Silicon Valley, and formerly the founder of L2 Counsel, P.C.
One of the first formal corporate actions to be taken following the formation of a corporation is issuing stock to the founders. Stock issuance to founders typically occurs during the formation process, though a company will continue to issue various securities through its growth and development. This article will outline five considerations to keep in mind as your company issues securities.

Picture Credits to Pexels.com
1. Board Approval
Any security to be issued requires approval from the board of directors. Regardless of the type of security, whether common stock, preferred stock, stock options, warrants, or convertibles notes, it is necessary for the board of directors to provide either written consent or approval at a board meeting. Ensuring securities have board approval validates the issuance of the security and is a simple administrative task that prevents complications in the future.
2. Payment for the Security
In return for the security, the company must receive payment. This payment can be monetary, property, or a service. Monetary payment can be made by cash or check, or an agreement to forgo a debt payment owed by the company issuing the security. Property of value that can be used as payment includes equipment, technology, or intellectual property rights. If a service is being used as payment, it must have already been provided and not be a promise to provide a service in the future.
When deciding on a payment option for a security, it is important to consider any tax issues that may arise. It is best to consult with a tax attorney or accountant as they will be able to advise the best payment option for each security holder.
3. Required Documents
The documents required when issuing securities will be dependent on the type of security that’s being issued. Below are the documents required for commonly issued securities.
Common stock
- Board approval
- Complete stock purchase agreement
- If insufficient number of shares authorized, charter amendment, stockholder approval and other approvals
Stock options
- Board approval
- Independent third-party valuation
- Stock plan
- Option grant and complete option grant notice
Preferred stock
- Board approval
- Complete stock purchase agreement
- Stockholder consent (watch for any class votes required)
- Ancillary agreements
Ensure that all required documents are prepared, signed, secured, and easily accessible. This will allow diligence by future investors to proceed without issue during financing or sale of the company.

Picture Credits to Pexels.com
4. Securities Filings
When issuing securities, a securities filing is often required to comply with state and federal securities laws. These laws require companies to fully disclose information regarding the company and associated investment risks. It is typical for companies to seek exemptions to these securities laws so that they do not have to provide full disclosure. Exemptions can be applied to the following situations:
- The number of securities being issued is small, and they are offered to a discrete number of potential investors
- Potential investors are already involved with the company to some degree so they are aware of the risks that may be associated with the investment
- Potential investors that have previous experience with similar investments, a high net worth, or a high income will be seen as able to bear the risk of the investment
Even if an exemption is employed, a securities filing may still be required to comply with the law. It is important to consult with your legal team when submitting any securities filings to ensure that all necessary laws are being complied with. Maintaining accurate records of all filings will also permit diligence by investors during any future transactions.
5. Stock Certificates
The final thing to consider when issuing stock is whether to issue a paper or electronic stock certificate. Public companies only issue electronic certificates, however private companies may choose whether a paper or electronic certificate would be more suitable. Increasingly, private companies are working with cloud-enabled vendors to issue electronic certificates.
Needed to send you this very small word to finally thank you so much yet again relating to the stunning thoughts you have shared on this site. This is so unbelievably open-handed with you to provide unreservedly what numerous people would have sold for an electronic book to help with making some profit on their own, primarily since you might well have tried it in the event you wanted. Those things likewise worked to become a great way to recognize that someone else have the same passion similar to my very own to see very much more with regard to this problem. I know there are some more pleasurable situations up front for those who start reading your website.
I’m also commenting to let you be aware of of the brilliant discovery my child encountered checking the blog. She came to understand a lot of details, including how it is like to have a marvelous coaching character to get folks completely fully grasp a variety of complex issues. You actually did more than her desires. I appreciate you for coming up with such essential, dependable, edifying and cool guidance on that topic to Ethel.
Great article and straight to the point. I am not sure if this is in fact the best place to ask but do you people have any thoughts on where to employ some professional writers? Thanks 🙂 https://arthritismedi.com Arthritis drugs over the counter for sale
tadalafil tablets: http://tadalafilonline20.com/ tadalafil tablets
buy prescription drugs online without best online international pharmacies india
prescription drugs online without doctor cheap tadalafil
where can i buy viagra over the counter viagra over the counter walmart
п»їviagra pills
buy real viagra online buy viagra online usa
cheap viagra online
best over the counter viagra order viagra online
viagra online usa
buy real viagra online where can i buy viagra over the counter
online doctor prescription for viagra
where to buy viagra where can i buy viagra over the counter
best over the counter viagra
Dzięki za sugestii dotyczących naprawy kredytu na temat tego konkretnego sieci -teren. Rzeczy i chciałbym zaoferować jako rada ludziom oznacza zwykle zrezygnować z tej mentalności że w tym momencie i rozwidź później. as be a as be a} społeczeństwo {my|my wszyscy|my wszyscy|wielu z nas|większość z nas|większość ludzi} ma tendencję do {robienia tego|robienia tamtego|próbowania tego|zdarzyć się|powtórz to} dla wielu {rzeczy|problemów|czynników}. Obejmuje to {wakacje|wakacje|wypady|wyjazdy wakacyjne|wycieczki|rodzinne wakacje}, meble, {i|jak również|a także|wraz z|oprócz|plus} przedmiotów {chcemy|chcielibyśmy|życzymy|chcielibyśmy|naprawdę chcielibyśmy to mieć}. Jednak {musisz|musisz|powinieneś|powinieneś chcieć|wskazane jest, aby|musisz} oddzielić {swoje|swoje|to|twoje obecne|swoje|osoby} chcą {od wszystkich|z potrzeb|z}. {Kiedy jesteś|Kiedy jesteś|Kiedy jesteś|Jeśli jesteś|Tak długo, jak jesteś|Kiedy} pracujesz, aby {poprawić swój kredyt|poprawić swoją zdolność kredytową|zwiększyć swój kredyt|zwiększyć swój kredyt|podnieś swój ranking kredytowy|popraw swój kredyt} wynik {musisz zrobić|zrobić|faktycznie potrzebujesz|naprawdę musisz} dokonać kilku {poświęceń|kompromisów}. Na przykład {możesz|możesz|możesz|możesz|będziesz mógł|| możesz|prawdopodobnie możesz} robić zakupy online {aby zaoszczędzić pieniądze|aby zaoszczędzić pieniądze|aby zaoszczędzić} lub {możesz przejść do|może się zwrócić|może odwiedzić|może obejrzeć|może sprawdzić|może kliknąć} używane {sklepy|sklepy|detaliści|sprzedawcy|punkty sprzedaży|dostawcy} zamiast {drogie|drogie|drogie|drogie|drogie|drogich} domów towarowych {dla|w odniesieniu do|dotyczących|odnoszących się do|przeznaczonych dla|do zdobycia} odzieży {strzykawki insulinowe 1ml|strzykawki tuberkulinowe|strzykawki|strzykawka|strzykawki insulinowe|strzykawki do insuliny|strzykawki trzyczęściowe tuberkulinowe|strzykawka tuberkulinowa|strzykawka insulinowa|strzykawka do insuliny|strzykawka trzyczęściowe tuberkulinowa}.
cost of paxil paxil brain zaps
diflucan 150 mg tablet price diflucan 150 mg prescription
where to buy viagra online https://viagrapills100.com/ over the counter viagra
viagra 100mg price https://viagrapills100.com/ viagra from india
viagra price https://viagrapills100.com/ generic viagra walmart
ed pills without a doctor prescription buy ed pills from canada
buy ed pills
buy ed pills buy ed pills
otc ed drugs
Muchas gracias. ?Como puedo iniciar sesion?
https://gabapentinst.com/# order neurontin online
https://hydroxychloroquinest.com/# buy hydroxychloroquine
tadalafil 30 mg https://elitadalafill.com/ 40 mg tadalafil
http://gabapentinst.com/# neurontin pfizer
buy sildenafil 100mg uk https://eunicesildenafilcitrate.com/ sildenafil 100mg discount
ed medications injectable https://alprostadildrugs.com/ alprostadil injection demonstration video
vardenafil vs tadalafil which is better? https://vegavardenafil.com/ vardenafil sublingual under tongue
https://zithromaxproff.com/# where to get zithromax
buy cheap generic zithromax
https://zithromaxproff.com/# zithromax for sale cheap
where can i buy zithromax in canada
sumycin capsules: buy chloromycetin online
terramycin online
tetracycline online: buy zithromax generic
fucidin capsules
alprostadil cost https://alprostadildrugs.com/ alprostadil mexico
tadalafil 40 mg from india https://elitadalafill.com/ tadalafil pills
online indian pharmacies: reputable online pharmacies in india all generic meds from india
vardenafil cvs https://vegavardenafil.com/ what is vardenafil used for
ordering medicine from india: best online international pharmacies india meds from india
citrate sildenafil https://eunicesildenafilcitrate.com/ sildenafil generic discount
best male erectile dysfunction pill: best erectile dysfunction pills erectile dysfunction pills
Hi there, just became alert to your blog through Google, and found that it is really informative. I am gonna watch out for brussels. I will appreciate if you continue this in future. Many people will be benefited from your writing. Cheers!
Excellent рost. I was checking cntinuously this bⅼog aand I am impressed!
Very helpful info specifically the last part :
) I caгe forr such info much. I was looking for this certain inf᧐rmation for a ѵery long tіme.
Thank youu and good luck.
Feel free to surf to my blog рost – ɑll free dating (freedatingsiteall.com)
erectile pills canada: order erectile dysfunction pills online levitra pills
free single chat
online free dating service
generic viagra walmart buy viagra online without prescription viagra without a doctor prescription usa
Hi! I’ve been following your blog for a long time now and finally got the courage to go ahead and give you a shout out
from Huffman Texas! Just wanted to tell you keep up the great work!
0mniartist asmr
Hurrah, that’s what I was seeking for, what a material!
existing here at this website, thanks admin of this web site.
0mniartist asmr
free single personal ads
senior dating site
Türkiye de bir çok kullanıcının istemekte olduğu üstelik Türkiyenin heryerinde yoğun bir ilginin söz hususu bulunduğu
hizmetlerdendir.
Instagram platformlarına ilginin yükselmesi ile beraber İnstagram da en mühim seçeneklerden biri durumuna gelmiştir.
Bu bağlamda takipçi miktarını yükselterek tesir oranını çoğaltmak isteyen pek
çok şahıs bulunmaktadır.
Sizde Türkiye de ki bu ünlü olan yada olmak isteyen kişiler gibi hemen instagram takipçi satın al diye
google de arayarak
takip2018 den takipçi alabilirsiniz
.
Instagram da takipçi satın almak kadar Beğeni satın al için de biraz araştırma
yapmalısınız.
Çünki 10binlerce takipçisi olan kişilerin beğenileri de fazla olmalıdır, Beğenilerinizi
gören herkes size hayranlık duyacaklardır bu sebepten beğeni paketlerini inceleyebilir
Kendinize uygun instagram beğeni paketini
seçerek satın alın
Thanks for finally writing about > Louis Lehot | 9 Best Considerations for an Effective Board Meeting | Blog
2020 < Loved it!
I have read a few excellent stuff here. Certainly worth bookmarking for revisiting.
I surprise how so much attempt you place to create this kind of wonderful informative
site.
viagra cost per pill non prescription viagra non prescription viagra
dating sites
single free dating sites without registering
alprostadil gel online https://alprostadildrugs.com/ aprostadil