cap table remediation

Discrepancy Audit

Incomplete documentation of early equity promises creates discrepancies between oral agreements and physical share registers. Conducting cap table remediation requires tracing every share issuance and warrant grant from the date of incorporation. Legal counsel reviews historical board minutes and tax filings to verify stock purchase payments.

Discrepancy resolution relies on matching recorded capital contributions against issued equity certificates.

Board Ratification

Formal corporate action cures past defects in stock issuances. Directors adopt ratifying resolutions under state corporate codes to validate previously unauthorized share transfers. Corporate secretaries attach signed board resolutions and shareholder consents to the master equity log.

Administrative corrections transform unratified stock promises into binding equity positions.

Evidentiary Record

Corrected ledgers prevent equity disputes during acquisition due diligence. Maintaining an audited equity ledger provides definitive proof of shareholder percentages during corporate transactions. Written share records override unwritten founder understandings.