Idaho Corporation Arrears Explained
The amount of money that has not been paid on the cumulative preferred stock from your Idaho corporation. Since the stock is increasing, in most cases, the dividends for common stock and other non-cumulative preferred stock may not be paid until the dividends in arrears have been paid.
In Accounting, The Word Arrears Are Used in Two Ways:
- One use involves the omitted dividends on cumulative preferred stock. The result of having these dividends in arrears is that the owners of the common stock cannot receive a dividend from the Idaho corporation until the preferred stock’s dividends in arrears are paid and the preferred stock’s current year dividend is also paid.
- Arrears are also used in the context of annuities. When an annuity’s equal payments occur at the end of each period, the annuity is said to be an annuity in arrears or an ordinary annuity.
Note: Arrears is also used to mean past due to or behind in payments.
Idaho Corporate Bylaw Rules
Idaho S-Corporation C-Corporation Bylaws
Idaho Corporations use bylaws to govern operations, meetings, hierarchy, growth, and acquisition, etc. It’s necessary to have an authorized director or officer sign the bylaws of the Idaho Corporation. Bylaws can be amended and reviewed routinely for additional content and changes. An Idaho Corporation can consist of one or more people. If you are the only owner, you would then sign the bylaws as all decision-making positions within the company. They should be stored in the corporate minute book along with directors’ and shareholders’ minutes and resolutions. This process is required by law to maintain your Idaho Corporation in good standing and continue enjoying limited liability.
Idaho Corporation Classes of Stock Rules
Idaho S corporations can have only one class of stock. Idaho C corporation can, if you want, issue different classes of stock, typically voting class that gives the stockholders the right to vote on all Idaho corporate decisions; and a not voting class, where the stockholders do not get to make any corporate decisions. Non-voting stock is sometimes issued to family members or people who are investors in the business, who you don’t want to be able to help you run your company Idaho C corporation stock is also classed as standard or preferred. Holders of preferred stock have prior or preferred claim on corporate assets over common stockholders. Preferred stockholders are often just investors, with no interest in the Idaho corporation other than making money on their investment. Preferred stock is usually non-voting stock. Stock can have what’s called a par value, stated value per share where you say how much one share is worth, or a no-par value, where the value is not stated.