Get option grant and 409A valuation approvals without leaving Carta

Carta already simplifies the option grant and 409A valuation processes for private companies, and now we’ve gone a step further. With our updated board resolutions product, we’re making it even easier to get board approval on option grants, 409A valuations, and any other resolutions or exhibits.

Without a streamlined board approval process, key decisions and sensitive documents end up sprawled across email, document sharing apps, and messaging services. Getting a resolution created and approved requires searching for information and manually re-entering data entry. And tracking decisions after they’re made can be nearly impossible.

Now, company admins and legal admins can securely send and track board resolutions based on data already in Carta, and built into workflows you already use. After resolutions have been approved, they are stored and referenceable any time in Carta.

Easily create, send, and track resolutions

Boards often approve similar types of resolutions over and over again. We built templates so your legal team can set up a resolution once and reuse it whenever you need it.

Here are some common templates you can set up on Carta:

  • Option grant approval
  • 409A approval
  • Meeting minutes approval
  • Omnibus (authorize officers of the company)

Once templates are created, you can drop in recent equity information straight from Carta, including:

  • 409A valuation
  • Option grants
  • Documents, such as a Form of Agreement to be approved

When the resolution has been created, you’ll select the board member approvers. Then your legal admin will get a task to review the resolution before it goes out to your board.

Once the legal admin publishes the resolution, board members will get an email asking them to approve the resolution (and if they open the email on their iPhone, they’ll be taken to the Carta iOS app where they can view and sign the resolution on the go.)

Company and legal admins can easily see which board members have approved the resolution, tracking progress toward unanimous consent.

A few ways to use board resolutions:

Board approval for an employee option grant

Here’s how to get employee option grants approved by your board of directors in Carta:

  • Draft an option grant in our Securities tab, select “needs board approval”
  • Select send, and Carta automatically drafts a new board resolution
  • To complete the process, simply send the option grant approval resolution to your legal admin for review, and then to your board for approval

Board approval for a new 409A valuation

Here’s how to get your 409A valuation approved by your board of directors in Carta:

  • Request a 409A valuation from Carta (we do 5,000 a year)
  • When our valuations team sends you your finished 409A valuation, go to the Board Resolutions tab and drop your pending valuation into your resolution template in one click. The resolution automatically includes a summary of your 409A and a graph of your fair market valuation over time
  • Send to your legal admin for review, and then to board members for approval
  • Board members can approve before your next meeting

How to get board resolutions

Board resolutions are part of Carta’s Starter, Growth, and Enterprise plans. If you’re a board member or lawyer and would like your company or client to use Carta board resolutions, reach out to our partnerships team.

We plan to continue to streamline common flows like issuing option grants. If you have feedback, reach out to our product team directly. We’d love to hear from you.

DISCLOSURE: This communication is being sent on behalf of eShares, Inc. dba Carta, Inc.  Certain transactional fees may apply. This communication is not to be construed as legal, financial or tax advice and is for informational purposes only. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein.


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