Board Resolution (Grants under Equity Incentive Plan) (Public Company)

Summary

This precedent is a set of board resolutions for a public company approving grants under an equity incentive plan to management, employees, directors and consultants. They can be adjusted to apply to Canadian companies formed under various corporate statutes. This precedent includes practical guidance and drafting notes. Security-based incentive plans are a commonly used means by companies of using equity to compensate or reward past performance, as well as incentivize future performance, of employees and other service providers. Generally speaking, equity incentive plans involve the issuance of new shares of the company or the payment of cash in lieu of the issuance of shares in an amount that is equivalent to the fair market value of the shares. To the extent that the recipients also become shareholders of the company, these plans can be used as a mechanism to align the interests of service providers with the shareholders of the company. For related resolutions, see precedents: Board...