Utah Proposed amendment to Article 4 of certificate of incorporation to authorize issuance of preferred stock with copy of amendment

• Category: Corporations - Public - Changes Affecting Capital Stock
• State: Multi-State
• Control #: US-CC-3-123
• Format: Word; Rich Text

Description

This sample form, a detailed Proposed Amendment to Article 4 of Certificate of Incorporation to Authorize Issuance of Preferred Stock w/Copy of Amendment document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats. Utah Proposed Amendment to Article 4 of Certificate of Incorporation: Authorizing Issuance of Preferred Stock In the state of Utah, a proposed amendment to Article 4 of a company's certificate of incorporation allows for the authorization of the issuance of preferred stock. This amendment aims to provide companies with additional flexibility and options when raising capital or structuring their ownership. Preferred stock is a type of ownership interest in a corporation that carries certain advantages and preferences over common stock. By issuing preferred stock, companies can attract investors who seek a different risk and reward profile compared to traditional equity shareholders. The proposed amendment to Article 4 of the certificate of incorporation offers various potential types of preferred stock that a company may choose to issue. Some of these different types of preferred stock options include: 1. Cumulative Preferred Stock: This type of preferred stock grants shareholders the right to receive dividend payments even if the company is unable to pay them in a specific year. Unpaid dividends accumulate and must be paid in the future, ensuring preferred shareholders have priority over common stockholders. 2. Convertible Preferred Stock: Convertible preferred stock provides shareholders with the option to convert their preferred shares into a predetermined number of common shares. This feature allows investors to participate in potential future growth if they choose to convert their preferred stock into common stock. 3. Participating Preferred Stock: With participating preferred stock, shareholders receive preferential treatment in dividend payments, similar to other types of preferred stock. However, they also have the additional option to participate in the distribution of excess profits beyond their preferred dividend amount on an equal basis with common shareholders. 4. Callable Preferred Stock: Callable preferred stock gives the issuing company the right to redeem the shares at a specified price after a predetermined period. This provides flexibility for the company to potentially repurchase the preferred shares at a later stage, reducing its overall dividend obligation. Companies may choose to issue one or more of these types of preferred stock, depending on their specific financial needs and objectives. It is important for companies to carefully consider the implications and advantages of each type of preferred stock before deciding which option best suits their requirements. To view the complete text and copy of the proposed amendment to Article 4 of the certificate of incorporation in Utah, please refer to the document provided. The amendment includes the relevant language and provisions needed to authorize the issuance of preferred stock, outlining the specific rights and preferences associated with each type. In summary, the Utah proposed amendment to Article 4 of the certificate of incorporation provides companies with the opportunity to authorize the issuance of various types of preferred stock. This amendment can enhance a company's capital-raising capabilities and offer investors additional options for investment.

Utah Proposed Amendment to Article 4 of Certificate of Incorporation: Authorizing Issuance of Preferred Stock In the state of Utah, a proposed amendment to Article 4 of a company's certificate of incorporation allows for the authorization of the issuance of preferred stock. This amendment aims to provide companies with additional flexibility and options when raising capital or structuring their ownership. Preferred stock is a type of ownership interest in a corporation that carries certain advantages and preferences over common stock. By issuing preferred stock, companies can attract investors who seek a different risk and reward profile compared to traditional equity shareholders. The proposed amendment to Article 4 of the certificate of incorporation offers various potential types of preferred stock that a company may choose to issue. Some of these different types of preferred stock options include: 1. Cumulative Preferred Stock: This type of preferred stock grants shareholders the right to receive dividend payments even if the company is unable to pay them in a specific year. Unpaid dividends accumulate and must be paid in the future, ensuring preferred shareholders have priority over common stockholders. 2. Convertible Preferred Stock: Convertible preferred stock provides shareholders with the option to convert their preferred shares into a predetermined number of common shares. This feature allows investors to participate in potential future growth if they choose to convert their preferred stock into common stock. 3. Participating Preferred Stock: With participating preferred stock, shareholders receive preferential treatment in dividend payments, similar to other types of preferred stock. However, they also have the additional option to participate in the distribution of excess profits beyond their preferred dividend amount on an equal basis with common shareholders. 4. Callable Preferred Stock: Callable preferred stock gives the issuing company the right to redeem the shares at a specified price after a predetermined period. This provides flexibility for the company to potentially repurchase the preferred shares at a later stage, reducing its overall dividend obligation. Companies may choose to issue one or more of these types of preferred stock, depending on their specific financial needs and objectives. It is important for companies to carefully consider the implications and advantages of each type of preferred stock before deciding which option best suits their requirements. To view the complete text and copy of the proposed amendment to Article 4 of the certificate of incorporation in Utah, please refer to the document provided. The amendment includes the relevant language and provisions needed to authorize the issuance of preferred stock, outlining the specific rights and preferences associated with each type. In summary, the Utah proposed amendment to Article 4 of the certificate of incorporation provides companies with the opportunity to authorize the issuance of various types of preferred stock. This amendment can enhance a company's capital-raising capabilities and offer investors additional options for investment.