Kiritsis & Associates

 

WHAT ARE THE MAJORITY VOTE RULE EXCEPTIONS, WITH REGARDS TO PROPERLY ESTABLISHING A QUOROM, UNDER NEW YORK CORPORATE LAW?

Aug 13, 2021

Kiritsis Law Group : 212-922-0005

Author John Kiritsis, Esq., CPA, MBA, MS, JD, LL.M

 

If a quorum is present, board action needs a majority director vote (BCL 708(d)) unless the certificate of incorporation specifies a greater proportion of votes needed for the transaction of some or all business (BCL 709(a)(2)). Although harder to draft due to greater minority shareholder rights under the New York BCL, majority voting rights may be better protected with well-drafted corporate documents.

 

Some of the items to be addressed when setting up the legal entity structure of your Corporation, may include the following:

What is the suggested name for the Corporation?

Will the Corporation decide whether to operate for profit or not?

Will the bylaws specify if the corporation is for profit or not?

Is it possible to take action on behalf of shareholders without holding a formal meeting?

What is the expected number of directors on the Board of Directors?

Will there be a corporate seal for the corporation?

Will the Corporation's bylaws be amendable by a simple majority vote?

Will a super majority be required to alter the Corporation's bylaws?

Will the corporation be liable for the legal expenses of its directors and officers in the event of a lawsuit?

Will the Corporation be able to legally issue stock certificates in response to a valid request?

Should the original members of the Board of Directors be mentioned in the Articles of Incorporation?

Is there going to be a President for the Corporation?

Is there going to be a Vice President for the Corporation?

Is there going to be a treasurer for the Corporation?

Who will serve as the company's corporate secretary?

What is the Corporation's expected yearly revenue in its first year of operations?

What are the main types of activities that the Corporation will undertake?

Where will the Corporation's regular business operations take place?

What is the maximum number of authorized shares that the Corporation can have?

Will shareholders of the Corporation be granted the legal ability to preserve their ownership percentage through new stock purchases?

Will the Corporation's stockholders be compelled to first offer their shares to the Corporation before selling them to others?

When does the Corporation's fiscal year finish (which isn't always the same as the calendar year)?

Where would the members of the Board of Directors' names, residences, and phone numbers be found?

Will the terms of the directors be staggered, and if so, how will this affect the length of time each director spends with the Corporation?

What will the duration of the director periods be in terms of raw years in office (if any) if they are staggered?

Will the directors be protected from personal culpability if the Corporation files a lawsuit against them?

 

Is it legal for the Corporation to do business with its directors and officers?

In terms of real estate contract agreements, who has the authority to sign and legally bind the Corporation?

What will individual directors/officers be allowed/authorized to conduct on a day-to-day basis on behalf of the Corporation?

Will the Corporation's directors be able to lease office space on the Corporation's behalf?

In terms of correspondence with the underlying commercial landlord, who is the corporate commercial tenant's point of contact?

Will the corporation's executives and directors be able to engage into employment arrangements with the company?

Which corporate executives will have legal authority to bind businesses in employment agreements?

What is the individual officers' contact information?

In terms of taxation and corporate governance, who are the Corporation's most important employees?

Will there be significant workers who aren't Board members?

Who were the company's first shareholders?

What will each of the early stockholders' contributions be?

What shareholder voting procedures are required for properly organized shareholder meetings to approve company action?

What are the conditions for approving corporate activity by written permission (in the absence of a shareholder agreement)?

What are the conditions for amending the company bylaws in terms of shareholder voting?

When and where will the first shareholder meeting of the Corporation be held?

What are the logistics of business shareholder meetings that are scheduled?

Is it possible for the Corporation to issue stock certificates?

Will the Corporation provide any ancillary benefits?

What (if any) advantages will the Corporation provide to its shareholders, executives, and/or directors?

Who will be the registered agent for the corporation?

Who will serve as the company's accountant?

Who will serve as the Corporation's general counsel and lawyer?

Who will serve as the Corporation's insurance expert?

Who will be the banker/financier for the Corporation?

Is there a founder's kind of agreement in place before to the incorporation date?

Is the Corporation's underlying business an existing one or a brand-new venture?

Is the Corporation going to be regarded as a C Corporation for tax purposes?

Will the corporation elect to be taxed as a S Corporation?

Will the corporation have, own, and/or run limited liability companies (LLCs) or subsidiaries?

 

Citations and possibly useful reference links, may include:

-U.S. Constitution

-New York State Bar Association

-New York City Bar Association

-American Bar Association

-New York State Secretary of State: Divisions of Corporations

-Internal Revenue Code

-Internal Revenue Service

-New York Department of Finance

-New York Business Corporation Law

-New York UCC (Uniform Commercial Code)

-New York LLC (Limited Liability Company) Law

-New York General Obligations Law (GOL)

-New York CPLR

-Delaware Corporate Law

-Delaware LLC Law

-Bankruptcy Code

-Revised Uniform Limited Liability Company Law (RULLCA)

-New York Partnership Law

-New York Trust Law

-New York Constitution

-Gordon v. Doty 69 P.2d 136 (Idaho 1937)

-A. Gay Jenson Farms Co. v. Cargill, Inc., 309 N.W.2d (Minn 1981)

-Hoddeson v. Koos Bros., 47 N.J. Super. 224 (N.J. Super. Ct. App. Div.1957)

-Ira S. Bushey & Sons, Inc. v. United States, 398 F.2d 167 (2d Cir. 1968)

-Majestic Realty Assoc., Inc. v. Toti Contracting Co., 30 N.J. 425 (1959)

-Town & Country House & Home Serv., Inc. v. Newbery, 3 N.Y.2d 554

-Fenwick v. Unemployment Compensation Comm’n, 133 N.J.L. 295 (1945)

-Martin v. Peyton, 246 N.Y. 213 (1927)

-Meinhard v. Salmon, 249 N.Y. 458 (1928)

-Eisenberg v. Flying Tiger Line, Inc., 451 F.2d 267 (2d Cir. 1971)

-Marx v. Akers, 644 N.Y.S.2d 121

-Auerbach v. Bennett, 47 N.Y.2d 619 (1979)

-A.P. Smith Mfg. Co. v. Barlow, 13 N.J. 145 (1953)

-Kamin v. American Express Co., 86 Misc.2d 809 (N.Y. Sup. Ct. 1976)

-Francis v. United Jersey Bank, 87 N.J. 15 (1981)

-Bayer v. Beran, 49 N.Y.S.2d 2 (N.Y. Sup. Ct. 1944)

-Escott v. BarChris Construction Corp.m 283 F.Supp. 643 (S.D.N.Y. 1968)

-Levin v. Metro-Goldwyn-Mayer, Inc., 264 F.Supp. 797 (S.D.N.Y. 1967)

-Rosenfeld v. Fairchild Engine & Airplane Corp., 309 N.Y. 168 (1955)

-AFSCME v. AIG, Inc., 462 F3d 121 (2d Cir. 2006)

-Crane Co. v. Anaconda Co., 39 N.Y.2d 14 (1976)

-Ingle v. Glamore Motor Sales, Inc. 73 N.Y.2d 183 (1989)

-Metropolitan Life Ins. Co. v. RJR Nabisco, Inc., 716 F.Supp 1504 (S.D.N.Y. 1989)

-Morgan Stanley & Co. v. Archer Daniels Midland Co., 570 F.Supp 1529 (S.D.N.Y. 1983)

-Buckley v. Valeo, 424 U.S. 1 (1976)

-First National Bank of Boston v. Belloti, 435 U.S. 765 (1978)

-Subchapter C of the Internal Revenue Code

-Subchapter S of the Internal Revenue Code

-McConell v. FEC, 540 U.S. 93 (2003)

 

Law Offices of Kiritsis & Associates 

Phone: 212–922–0005

Manhattan Office (Main Office):

633 Third Avenue

New York, NY 10017

Suite 1306

Brooklyn Office (By Appointment Only):

1023 74th Street

Brooklyn, NY 11228

1st Floor

New Jersey Office:

7309 Ventnor Avenue

Ventnor, NJ 08406

2nd Floor

 

ATTORNEY ADVERTISING. PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME.

 

We hope you would find this website useful with regards to finding potentially relevant information for your legal issue. The Law Offices of Kiritsis & Associates PLLC is a boutique Law Firm Group headquartered in Midtown Manhattan, with offices in Manhattan, Brooklyn (NY) and New Jersey. We strive to provide professional legal services for individuals and various business entities. Our clientele ranges from including aspiring entrepreneurs, startups to established business organizations.

 

We offer flat fee prices for many of the practice areas provided listed throughout our website. For more information on a topic you may be interested in, or simply to find out how our Law Firm Group can help, you may click at any of our site's links.

 

We are available for existing and potentially new clients 7 days a week via online, phone, and/or in person. 

 

Phone: 212-922-0005


Intellectual Property Disclaimer(s):

Copyright 2021

The materials available through this website and any other websites owned by John Kiritsis (individually and collectively, the "Website") are the property of John Kiritsis and his entities, and are protected by copyright, trademark, and other intellectual property laws. You may not use, reproduce, download, store, post, broadcast, transmit, modify, sell, or make available to the public content from the Website without the prior written approval of John Kiritsis. Be aware that any unauthorized use of John Kiritsis trademarks and copyrighted content for commercial purposes in violation of John Kiritsis's intellectual property rights will be vigorously enforced. All other trademarks, service marks and trade names referenced in this site are the property of John Kiritsis.

 

Our firm has a robust practice area presence regarding business formation and corporate governance. Below are just some of the areas that our firm can help you with:

 

-Incorporations

-New York Incorporation State Filing Forms

-NY Incorporation State Filing Fee Payment Forms

-Corporate Seals

-Corporate Books and Records

-Incorporator Filer Services

-Incorporation Organizer Services

-Corporate Secretary Services

-Corporate Governance

-Corporate Litigation

-Piercing the Corporate Veil

-Corporate Kits

-Professional Service Corporations

-Professional Corporations

-Service Corporations

-C Corps

-S Corps

-Corporate Minutes

-Corporate Meeting Minutes

-Corporate Paper Meetings

-Corporate Live Meetings

-Corporate Resolutions

-New York BCL Legal Analysis Services

-Corporate Bylaws

-Shareholder Agreements

-Shareholder litigation

-DIrect Corporate Litigation

-Derivative Corporate Litigation

-Corporate Employment Contracts

-Corporate Independent Contractor Agreements

-Corporate Structuring

-Corporate Mergers

-Corporate Reverse Mergers

-Corporate Consolidations

-Corporate Tax Return

-Corporate Tax Compliance

-Corporate Tax Controversies

-Corporation Stock Certificates

-Corporation Preliminary Name Search

-Corporate Banking Resolution

-Corporate Asset Purchase Agreements

-Asset Protection Driven Incorporations

-Tax favored Corporations

-LLC Incorporations

-S Corp tax election

-Parent Corporations

-Subsidiary Corporations

-Corporation Division

-Shell Corporation

-Shelf Corporation

-Corporate Resolution Authorizing Transaction

-Corporate Service Agreements

-Ongoing Corporate Legal Counsel Assistance

-Minority Business Certification for New York Corporations

-Women Owned Certification for New York Corporations

-Veteran Owned Small Business Certification for New York Corporations

-Service Disabled Veteran Small Business Certification for New York Corporations

-Legal Name Selections for New York Corporations

-Corporate Tax Ids

-Corporation EIN

-Corporation New York State Tax Id

-Federal Corporate Income Tax Return

-State Corporate Income Tax Return

-For Profit Business Corporations

-New York Domestic Business Corporations

-New York Foreign Qualified Corporations

-Shareholder Proxy Battles

-Shareholder Voting Proxy Trust Agreements

-Bearer Corporate Stock Certificates

-Par Value Corporate Stock Shares

-Par Value Corporate Stock Certificates 

-Corporation LLC Divisions

-Corporation D &  B Numbers

-Bank Letters for Corporations

-Employer Manuals for Corporations

-Corporation Federal Trademarks

-Corporation State Trademarks

-Corporation Federal Service Marks

-Corporation State Service Marks

-Corporation Copyright Registration

-Corporation Business Registration

-Corporation Biennial Filing Reports

-Corporation Franchise Fee Filling Reports

-Corporation Stock Purchase Agreements

-Corporate Indemnification Agreements

-Corporate Shareholder Restrictive Agreements

-Corporate Shareholder Divorce Protection Structuring

-Corporate Security Agreements

-Corporate Lender's Agreements

-Corporate Promissory Notes

-Corporate Capital Stock

-Corporation Non Voting Stock Certificates

-Corporation Preferred Stock Certificates 

-Corporate Side Agreements

-Corporation Registered Agent Services

-Corporation General Counsel Club Services

-Duplicate Corporate Kit Orders

-Replacement Corporate Kit Orders

-New Corporate Kit Orders

-Corporate Books & Ledgers

-Corporate Meeting Recordation Services

-Articles of Incorporation

-Corporate Shareholder Ownership Register

-Pre-Incorporation Agreements

-Seed Capital Credit Agreements

-Shareholder Stock Pledge Agreements

-Corporation Independent Director Service Agreements

-Customized Corporate Record Kits

-Corporation Document Retrieval Services

-Corporation Filing Forms Services

-Corporation Nominee Services

-UBO (Ultimate Beneficial Owner) Trust Agreements

-Corporate Stock Ledgers

-Corporation Fictitious Names

-Corporation Alternate Names 

-Corporation DBAs

-For Profit Corporations

-Low Profit Corporations

-Non Profit Corporations

-Shareholder Directive Order Agreements

-Corporate Dissolutions

-Corporate Terminations

-Perpetual Duration Corporations

-Limited Duration Corporations

-De jure Corporations

-De facto Corporations

-Corporation Certificate of Good Standing

-Corporate Tax Clearance Letter

-Corporate Inversions

-Corporate Domestications

-Corporate Spin Offs

-C Corp electing S Corp tax treatment

-Ending S Corp tax election

-C Corp Subsidiary

-C Corp Division

-S Corp Subsidiary

-S Corp Sub Subsidiary

-Shareholder Meeting Agenda

-Shareholder Meeting Paper Ballots

-Incorporation for Licensed Professional Owners/Executives

-Corporate Tax Avoidance Planning

-Reverse Corporate Piercing

-Corporate Bankruptcy Petition Filings

-Corporate Governance Documents

-Corporate Stock Shares Certificates

-Board of Director Meeting Minutes

-New York Articles of Incorporation Filing Forms

-New York Amendment of Articles of Incorporation

-New York Correction of Articles of Incorporation

-New York Corporation Kits

-New York LLC formation

-New Jersey LLC Formation

-New York Incorporations

-New Jersey Incorporations

-Delaware LLC formation

-Delaware Incorporations

-Limited Liability Law

-Business Corporate Law

-Partnership Law

-General Partnerships

-Limited Liability Partnerships

-Limited Partnerships

-Solo Proprietorships

-DBAs (Doing Business As)

-Business Registration

-Registered Agent Services

-Agents for Service of Process

-NY LLC Newspaper Publication

-New Jersey Business Registration

-NY Entity Biannual Report

-NJ Entity Biannual Report

-Delaware Franchise Tax Returns

-C Corps

-S Corps

-Partnership Tax Returns

-Disregarded Entities

-Mergers

-Acquisitions

-Non-Profit Entity Structures

-Corporate Governance

-Technology Law

-Start-up Law

-Corporate Law

-LLC Litigation

-Entrepreneurship Law

-Business Start-ups

-Joint Venture Agreements

-Seed Capital Contracts

-Copyrights

-Trademarks

 

ATTORNEY ADVERTISING. PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME.

 

The views expressed by this author are not legally binding or reflective of the author, the author's firm, the author's employers, the author's employees or any individual and/or organization.

Website Created & Hosted by Website.com Website Builder