What is the procedure for issuing stock?
In Massachusetts, the procedure for issuing stock depends on the type of stock and the type of company. For example, if a company is an S-corporation, the issuance of shares is usually done in accordance with the Articles of Incorporation, which the state requires when organizing the company. The number of shares and the price of each share must also be determined. In addition, the company needs to prepare a Stock Certificate in which the total number of shares being issued, the name of the shareholder, and the date of issuance are indicated. The Stock Certificate must be signed by the company’s authorized representative and usually sealed with the corporate seal. The company must also file a Statement of Capital with the Secretary of State in Massachusetts. This statement will show the total number of shares authorized, the number of shares issued and the par value of each share. Finally, the company’s Board of Directors must pass a resolution approving the issuance of stock. This resolution must also include the total number of shares being issued and the percentage of company ownership for each stockholder. In conclusion, the procedure for issuing stock in Massachusetts depends on the type of stock and the type of company. Generally, the company must prepare a Stock Certificate, file a Statement of Capital with the Secretary of State, and pass a resolution approving the issuance of the stock.
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