Despite the ever-changing nature of the corporate world, there are certain issues that remain consistent in relation to corporate resolutions. From working out shareholder agreements to winding up of business, Los Angeles executives are subjected to many tricky legal issues. Knowing what to evaluate for corporate resolution is essential to ensure success in the long term.

In this article, we’ll be running through some of Chicago's most prominent matters to consider when it comes to Corporate Resolution. These include a company's dissolution, understanding the corporate capacity of shareholders, keeping an eye out for potential mismanagement issues, creating appropriate binding agreements and staying mindful of regulations.

1. Company Dissolution

When it comes to corporate law, the dissolution of companies often holds the highest importance. While there are a number of circumstances that can lead to a company’s dissolution, the most common one relates to shareholder agreements when they come to very different conclusions. For example, if one shareholder wants to keep a company alive while the other wants to shut it down, the disagreement can eventually lead to industry-specific dissolution procedures.

In these cases, it’s important to ensure that all parties concerned are consulted and that all legal criteria is met before the company can be officially disbanded. Issues such as outstanding debts, distribution of assets, and the awarding of ownership can all be subject to the court’s discretion, so having an experienced Los Angeles-based lawyer can be key.

2. Corporate Capacity of Shareholders

Employing the right shareholders often proves to be essential to the success of a company. In this context, the corporate capacity of shareholders refers to their individual ability to allocate funds and resources to aid in the functioning of the business.

When evaluating a potential investor, it’s important to consider the value they could bring to the company. Do they have the expertise, financial or otherwise, to bring a unique quality that could make a difference to your business? Moreover, do their values align with the company’s mission statement? All these factors should be taken into careful consideration.

3. Mismangement Issues

Another important factor to consider is the possibility of mismanagement issues. As the company grows and evolves with the changing times, so do their managers and board members. Despite recruiting the right staff, it’s important to stay vigilant and protect the company from any potential wrongdoing.

When tackling a mismanagement issue, it’s important to keep in mind the state’s labor laws and understand the responsibility of a director. Especially when it comes to a smaller setup, understanding every aspect of how the mismanagement happened is essential to ensure that the proper action is taken against the person responsible.

4. Creating Appropriate Binding Agreements

Creating binding agreements with employees or external entities is Paramount for the company’s success. With the contracts determining the conditions of compensation and the obligations required from each party, the creation of clear and concise contracts are a must.

For instance, if there’s a contractor involved, the regulations should account for all the terms required for the services, along with the payment terms and dispute resolution procedures. It’s also important to include clauses such as non-disclosure, intellectual property, attorney’s fees, and indemnification, since they are very common in service contract of all sorts.

5. The Relevancy of Regulations

No matter where in the world the company is located, laws and regulations often dictate a great deal of its success. From sales to taxation, staying in accordance with each region's laws and regulations is a necessity for any thriving corporate entity.

In this context, Los Angeles-based companies should ensure that they fully understand the local laws and regulations, by working with the California Secretary of State and attorney general offices. Additionally, legislation often changes, making it all the more important to keep up with updates and make sure to adhere to all the relevant legal procedures.


Corporate Resolution,

Shareholder Agreements,

Corporate Capacity