As you work through the Equity Financing workflow, you will have different options to complete the resolutions necessary to approve the financing. It’s up to you how you would like to gather those approvals. If you would like to see a bit more about how the general approval process in Shoobx functions, the governance help page has more details.
For this workflow, to obtain Board and Stockholder approval of your financing, you have three options:
- Create the Board and Stockholder Consents through Shoobx. This option will create two Written Consents containing the necessary resolutions required for this workflow. The signatures of your Board Members and Stockholders to approve these actions will be gathered as part of this workflow. Note that, for the Stockholder Consent, you'll be asked to select the stockholders from whom you'd like to solicit approval. The workflow will require a majority of the total common stock and preferred stock (as converted to common stock). The progress bar(s) will indicate the percentage of equity represented by the selected names. A green bar will indicate that the minimum percentage threshold has been met. Once the signatures have been sent out to be collected, they can be tracked on the "Monitor Closing Steps" page.
- Rely on previously executed Board and Stockholder Approval documents. This option will allow you to utilize previously executed Board and Stockholder approval documents to approve the financing. You will be able to select from existing Board and Stockholder Approval documents in your data room, or upload the documents. Note that, in this case, the documents you upload should be fully executed already.
- Use other method of approval. For the board, this option will allow you to queue the resolutions from this process for approval through a separate Board approval workflow: "Record Board Meeting Minutes" or "New Board Consent." In the case of the stockholders, resolutions from this process can be accomplished through a standalone "New Stockholder Consent" workflow. Using this method allows you to bundle the resolutions from this workflow along with resolutions from other actions (including custom resolutions). Note that your Equity Financing workflow will be blocked until these resolutions are fully approved by your Board Members and Stockholders.
- Upload the body of the Board and Stockholder Consents only, and have them signed through Shoobx. As is further explained in the Equity Financing - Additional Contracts and Uploaded Content article, the Equity Financing workflow allows you to upload only the body of an agreement - in this case a Board or Stockholder Consent - and have it signed through Shoobx as part of the closing process. This can be done at the Checkpoint step, by selecting "upload document body" on the left side of the screen for the document(s) you wish to upload.
If you have any questions about this process and the documents created, feel free to reach out to firstname.lastname@example.org!