WHY SHOULD I GET A CORPORATE BINDER, SHARE CERTIFICATES, & SEAL?

Investing in a corporate binder, share certificates and seal (also known as a "Corporate Kit") is a good idea. These kits contain the corporation's essentials:

  1. Customized Binder - Here, the corporation will keep all of its records, including the articles of incorporation, bylaws, and all the minutes that the board of directors will generate throughout the corporation's operations.
  2. 20 Share Certificates - Required for the actual issuance of shares to the shareholders. One certificate can represent any number of shares. Just fill-in the actual number of shares issued to the shareholder onto the certificate's designated spaces.
  3. Corporate Seal - Most corporations adopt a corporate seal in case a creditor or financial institution requests it for some formality, although it is not required by law. The share certificates have a circular location for embossing with the seal.
  4. Stock Ledger - This is where the secretary of the corporation will write down how many shares each shareholder was issued.



Thus, a corporate kit serves to satisfy the formalities of a corporation's existence and organization. You may order your Corporate Binder in black, green or burgundy. The corporate seal is kept in a pouch that comes with the kit.

After receiving the corporate kit, the board of directors should have it present at their first board meeting. They will need a sample of the share certificates to approve their form. Also, they will be able to insert the bylaws into the binder after they have ratified its adoption by the incorporator.

You can read more about this in the FREE proposed agenda to the First Board Meeting.



WHAT IS THE "ENDORSED - FILED" DATE FROM THE SECRETARY OF STATE?

When the California Secretary of State receives your articles of incorporation, they will stamp it in the top right corner with a date. Above the date, it will say "Endorsed - Filed" as in the example below.

This date of filing is the date on which the corporation begins its existence. California Corporations Code section 200(c). It will be used to create the corporate seal and it will be printed on the corporation's share certificates, both of which come as part of the corporate kit.


 

 

 

 

 

 

 

 


LEGAL DISCLAIMER
By visiting and using this website, you agree to our Terms and Conditions.

The material above is NOT a complete explanation of the law regarding the form's subject matter -- it only provides specific legal information regarding the associated form. It is not intended to provide information outside the scope of the associated form. It is intended to explain only certain legal concepts in simple terms in order to help the reader understand what the form is for and how it's generally used.

Also, the above information is not legal advice. It is GENERAL legal information that merely states the law. If you need legal advice about your own particular situation, you must hire an attorney that can listen and apply the law to your specific facts. Online Self-help Legal Tool for California Forms cannot and does not practice law and cannot help you with your individual problem.

Also, the foregoing information and the form related hereto pertain only to California law, unless indicated otherwise at the top of the corresponding . This website does not have information regarding federal law or the laws of other states.