dividend-declaration-resolution

name	dividend-declaration-resolution
title	Dividend Declaration Resolution
description	Drafts a board of directors resolution authorizing a cash, stock, or property dividend to shareholders. Enforces solvency testing (equity and balance sheet), WHEREAS/RESOLVED clause structure, critical date triad (declaration/record/payment), officer authorization, and Secretary certification under Delaware DGCL §170 or equivalent state statute. Use when documenting board approval of a dividend distribution or when corporate governance records require a formal profit-distribution authorization.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/dividend-declaration-resolution
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	corporate
language	en
tags	["drafting"]

Dividend Declaration Resolution

Drafts a board-adopted resolution authorizing a dividend distribution, functioning as a binding corporate record and evidentiary foundation for fiduciary compliance.

Quick Start

Collect these inputs before drafting:

1. Articles of incorporation — legal name, authorized stock classes, preferred dividend preferences, cumulation rights
2. Bylaws — quorum requirements, notice provisions, officer authority
3. Financial statements — balance sheet and income statement within 90 days; retained earnings balance
4. Loan agreements — dividend restrictions, maintenance covenants, lender consent requirements
5. Prior resolutions (if any) — format consistency, accumulated preferred dividends paid
6. Dividend parameters — type (cash/stock/property), amount per share, proposed record date, proposed payment date

Output Structure

1. Header Block

• Corporation legal name, document title ("Resolution of the Board of Directors Authorizing Declaration of [Type] Dividend")
• Meeting type (regular/special), date, location/remote platform, time

2. Meeting Mechanics

Item	Required Content
Notice	Proper notice per bylaw § ___ confirmed; waiver if applicable
Quorum	Quorum present per bylaw § ___ and [State] Corp. Law § ___
Directors present	Full names
Directors absent	Names; whether excused
Presiding officer	Name and title

3. WHEREAS Recitals

Draft numbered recitals in this order:

#	Recital	Key Content
1	Financial review	Board reviewed financials as of [date]; retained earnings of $[X]
2	Statutory authority	Dividend pursuant to [Del. DGCL §170 / [State] [Cite]] [VERIFY for non-DE]
3	Equity solvency	Corporation able to pay debts as they become due
4	Balance sheet solvency	Assets exceed liabilities after giving effect to dividend