draft-cap-table-resolution
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name: draft-cap-table-resolution
description: Use when a board or shareholder resolution is needed to formally record and authorize a cap table update following a share issuance, option exercise, transfer, conversion, or other equity event. Captures the pre- and post-event cap table, authorizes the share register update, and triggers any required registrar filing. Applicable across all corporate jurisdictions — format and filing requirements vary by jurisdiction.
license: MIT
metadata:
id: draft.cap-table-resolution
category: draft
practice_area: corporate
jurisdictions: [UAE, KSA, LB, DIFC, ADGM, US, UK, multi]
priority: P1
intent: [cap table, share register, equity event, share issuance, option exercise]
related: [draft-board-resolution, draft-articles-of-association, draft-agm-minutes, draft-convertible-note]
source: Louis — HAQQ Legal AI (github.com/sboghossian/mini-claude-for-legal)
version: "1.0"
Draft — Cap Table Resolution
When to use this
A cap table resolution is required whenever a company's equity ownership structure changes. Without a board or shareholder resolution formally authorizing the change and directing the share register update, the equity event is not properly documented and may be challenged.
Triggering events:
- New share issuance (to new investor, existing shareholder, or employee)
- Option or warrant exercise
- Transfer of shares between existing shareholders
- Conversion of convertible note or SAFE into equity
- Share buyback or cancellation
- Creation of a new share class
- Reclassification or consolidation of existing shares
- Vesting acceleration event
Required inputs
| Input | Notes |
|---|---|
| Triggering event | Identify the specific equity event |
| Pre-event cap table | All shareholders, classes, share count, percentage |
| Post-event cap table | After the change, reflecting new ownership |
| New shareholder details (if applicable) | Full legal name, nationality, address, ID/registration number |
| Share details | Class, number of new/transferred/cancelled shares |
| Consideration (if applicable) | Price per share; aggregate consideration; date of payment |
| Authorization basis | Subscription agreement, option exercise notice, board approval of transfer |
| Registrar filing requirement | Does the jurisdiction require a filing to update the commercial register? |
Document structure
Resolution form
WRITTEN RESOLUTION OF THE BOARD OF DIRECTORS
OF [COMPANY NAME] ([REGISTRATION NUMBER])
Dated: [DATE]
The Board of Directors, having reviewed the [Subscription Agreement /
Transfer Instrument / Option Exercise Notice / Conversion Notice] dated
[DATE] relating to the [issuance / transfer / conversion] of [NUMBER]
[CLASS] shares (the "Equity Event"), hereby RESOLVE as follows:
1. EQUITY EVENT AUTHORIZED
RESOLVED THAT the [issuance of [NUMBER] new [CLASS] shares / transfer
of [NUMBER] [CLASS] shares from [Transferor] to [Transferee] /
conversion of [CONVERTIBLE INSTRUMENT] into [NUMBER] [CLASS] shares]
on the terms set out in the [Subscription Agreement / Transfer
Instrument] dated [DATE] be and is hereby approved and authorized.
2. UPDATED CAPITALIZATION
Pre-Event Capitalization:
┌──────────────────┬───────────┬──────────┬──────────┐
│ Shareholder │ Class │ Shares │ % │
├──────────────────┼───────────┼──────────┼──────────┤
│ [Name A] │ Ordinary │ [X] │ [X%] │
│ [Name B] │ Ordinary │ [X] │ [X%] │
│ Option Pool │ Options │ [X] │ [X%] │
│ TOTAL │ │ [X] │ 100% │
└──────────────────┴───────────┴──────────┴──────────┘
Post-Event Capitalization:
┌──────────────────┬───────────┬──────────┬──────────┐
│ Shareholder │ Class │ Shares │ % │
├──────────────────┼───────────┼──────────┼──────────┤
│ [Name A] │ Ordinary │ [X] │ [X%] │
│ [Name B] │ Ordinary │ [X] │ [X%] │
│ [New Investor] │ Pref A │ [X] │ [X%] │
│ Option Pool │ Options │ [X] │ [X%] │
│ TOTAL │ │ [X] │ 100% │
└──────────────────┴───────────┴──────────┴──────────┘
3. SHARE REGISTER UPDATE
RESOLVED FURTHER THAT the Company's share register (register of
members) be updated to reflect the post-event capitalization set out
above, with effect from [DATE].
4. REGISTRAR FILING [if required]
RESOLVED FURTHER THAT [the Company Secretary / [Name], Director] is
authorized and directed to file the necessary notifications with
[Ministry of Economy / DED / DIFC Registrar / Commercial Register]
to register the changes to the Company's shareholding structure
within [X] days of this resolution.
5. SHARE CERTIFICATES [if applicable]
RESOLVED FURTHER THAT new share certificates bearing the Company seal
be issued to [New Shareholder] in respect of [NUMBER] [CLASS] shares
and that any existing certificates affected by this Equity Event be
cancelled.
6. ANCILLARY AUTHORITY
RESOLVED FURTHER THAT [Name / the Directors] are authorized to
execute all documents, make all filings, and take all steps necessary
to give effect to this resolution.
IN WITNESS WHEREOF:
_______________________ _______________________
[Director Name] [Director Name]
Director Director
Date: ___________ Date: ___________
Jurisdictional filing requirements
| Jurisdiction | Filing requirement | Platform | Deadline |
|---|---|---|---|
| UAE onshore (LLC) | File change-of-shareholders with DED (or free-zone authority) | TAMM / DED online | Typically within 30 days; vary by emirate |
| UAE (PJSC) | Notify SCA; update shareholder register with securities depository | Nasdaq Dubai / ADX depository | Per SCA rules |
| KSA | File with Ministry of Commerce; notarize and authenticate | Mawthq platform | Within the time stipulated in Companies Law |
| DIFC | File change in shareholders with DIFC Registrar | DIFC eportal | No fixed deadline but best practice: promptly |
| ADGM | File with ADGM Registration Authority | ADGM portal | Within 14 days for most events |
| LB | Notarize and register amendment with Commercial Register in jurisdiction of incorporation | Commercial Register | Promptly; publicity required |
| US (Delaware) | No filing for private companies unless authorized share count changes (amend Certificate of Incorporation) | Delaware SOC | Per DGCL |
Special cases
Convertible note conversion
When a convertible note converts to equity:
- The resolution should reference the convertible note agreement, the conversion trigger event, and the conversion price calculation.
- Attach: (a) copy of the convertible note; (b) conversion calculation showing principal + accrued interest ÷ conversion price = shares issued; (c) acknowledgment that the note is cancelled upon conversion.
Option exercise
- Reference the equity plan and option grant letter.
- Confirm the exercise price has been paid (or the exercise method: cash / net exercise / cashless exercise).
- Issue shares from the unissued option pool.
SAFE conversion
- SAFEs convert on a "qualified financing" trigger.
- Board resolution should confirm that the triggering financing qualifies under the SAFE terms.
- Confirm the conversion price methodology (cap-implied price vs discount-implied price, whichever is lower).
- See [[draft-convertible-note]] for the SAFE vs note discussion.
Common mistakes
- No pre/post cap table in the resolution: the resolution must contain or reference the updated cap table; it is the authoritative record.
- Forgetting to cancel old share certificates: uncancelled certificates can be used fraudulently; always cancel and reissue.
- Missing registrar filing deadline: in UAE and KSA, delayed filings can result in fines and the change not being recognized by third parties.
- Conversion calculation not attached: for convertible note or SAFE conversions, always attach the calculation as an exhibit to avoid future disputes about the share count.
- Not updating option pool: if shares are issued from the option pool, the resolution must note the remaining unissued pool size.
Related skills
- [[draft-board-resolution]]
- [[draft-articles-of-association]]
- [[draft-agm-minutes]]
- [[draft-convertible-note]]