Resolution Providing for Retention of Accumulated Earnings

WHEREAS, the corporation's (Corporation) present plant is operating at ........ percent (........%) of capacity; and

WHEREAS, a study made for Corporation by [name of consultants] concludes that the market for Corporation's products will grow at a rate that will require Corporation to double its productive facilities in the next [number] years; and

WHEREAS, the architectural firm of [name] estimates the cost of constructing facilities on Corporation's site that would enable Corporation to meet these production requirements to be ........ dollars ($........); and

WHEREAS, the uncertainty of money markets and Corporation's credit make it unlikely that Corporation will be able to borrow the funds needed to build these additional facilities; and

WHEREAS, Corporation has commissioned the architectural firm of [name] to begin preliminary designs for the new plants and facilities,

IT IS RESOLVED THAT: the accumulated earnings and profits of Corporation be retained to construct the facilities described in the preamble to this Resolution.