Document background
A Board Resolution For Issue Of Convertible Notes is a critical corporate governance document used when a Canadian company seeks to raise capital through convertible debt instruments. This document is typically employed during growth phases, bridge financing, or when companies prefer debt that can later convert to equity. The resolution must comply with the Canada Business Corporations Act and provincial securities regulations, making it essential for both private and public companies. It details the board's authorization of the note issuance, including specific terms such as conversion price, interest rate, maturity date, and total issuance amount. The document serves multiple purposes: it demonstrates proper corporate governance, provides evidence of board authorization for regulatory compliance, and creates a clear record of the terms and conditions for all stakeholders involved.
