Board Resolution: Declaration of Cash Dividend
(FL Corporation)

Summary

This template may be used by a Florida corporation's board of directors to declare a distribution in the form of a cash dividend. This template includes practical guidance and drafting notes. Fla. Stat. Ann. § 607.06401 (1) provides that a "board of directors may authorize and the corporation may make distributions to its shareholders subject to restriction by the articles of incorporation and the limitations in subsection (3)" (i.e., in respect of distributions that would cause the corporation to be insolvent). (See Drafting Note to Third Paragraph.) For additional information about Florida corporations, see Formation and Qualification (FL Corporation) and Corporation Stock and Stockholders (FL Corporation).