When was the 2019 Plan approved by the shareholders of Management Recruiters?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
In December 2019, our Board approved the 2019 HireQuest, Inc. Equity Incentive Plan (the "2019 Plan"). Subject to adjustment in accordance with the terms of the 2019 Plan, no more than 1.5 million shares of common stock are available in the aggregate for the grant of awards under the 2019 Plan. No more than 1 million shares may be issued in the aggregate pursuant to the exercise of incentive stock options. In addition, no more than 250 thousand shares may be issued in the aggregate to any employee or consultant, and no more than 50 thousand shares may be issued in the aggregate to any non-employee director in any twelve-month period. Shares of common stock available for distribution under the Plan may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares reacquired by the Company in any manner. The 2019 Plan was approved by our shareholders in June 2020 and became effective as of that date.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters's 2024 Franchise Disclosure Document, the 2019 HireQuest, Inc. Equity Incentive Plan (the "2019 Plan") was approved by the shareholders in June 2020. The plan became effective as of that date.
This means that while the Board of Directors approved the plan in December 2019, it required shareholder approval to be fully implemented. This is a common practice to ensure that major equity decisions have the backing of the company's owners.
For a prospective Management Recruiters franchisee, this detail provides insight into the company's governance and how equity-based compensation is structured and approved. It also shows the timeline from board approval to shareholder approval and effectiveness, which can be useful for understanding how quickly the company can implement such plans.