Stock Transfer Ledger

There are two main types of shares – common and preferred. Owners of common stocks have the right to appoint members of the board of directors. Conversely, preferred stocks don’t come with voting rights. However, preferred stockholders take priority in the distribution of profits and dividends. In the grand scheme of things, there are advantages and disadvantages to both.

If you lose the company’s stock ledger, you’ll have to create a new one. You might have to retain an attorney to create a new ledger such that it contains only accurate information.

Meeting minutes are another important part of record-keeping for any corporation. Essentially, it's a document that contains real-time notes taken in a meeting or hearing. Meeting minutes are usually recorded by the company's secretary to reflect everything that happened in the meeting, including the actions that the company will be taking. Meeting minutes are required of corporations by state business corporation laws.

A shareholder proxy agreement is a legally binding document that transfers voting rights from a shareholder to a proxy of their choosing. This is an incredibly useful document that many stockholders use for numerous reasons, including if they cannot be present at a meeting or if they think someone else would know better. The proxy may or may not receive specific voting instructions and is often another shareholder in the company.

An exit strategy is a form of contingency plan where a corporation may issue stocks to realize gains on investments. The strategy is often used when a company is not profitable. Another scenario is when the profit objective is met but in light of notable changes in market conditions or the occurrence of a catastrophic event, an exit strategy may be applied.