The District of Columbia Proposed amendment to the certificate of incorporation aims to authorize the issuance of up to 10,000,000 shares of preferred stock. This proposed amendment seeks to enhance the flexibility and potential growth opportunities for the corporation through the issuance of preferred shares. Preferred stock typically functions differently from common stock in several key aspects. It often grants shareholders additional rights and privileges, such as preferential dividend payments and priority in asset distribution in the event of liquidation. Preferred stockholders often have a fixed dividend rate, providing stability to their income streams. The District of Columbia Proposed amendment may introduce different types of preferred stock, each with its own unique features and characteristics. For example: 1. Cumulative Preferred Stock: This type of preferred stock entitles shareholders to receive any unpaid dividends in future years, even if the corporation did not declare dividends in previous years. Accumulated dividends are paid out before common stock dividends. 2. Convertible Preferred Stock: Convertible preferred stock allows shareholders to convert their holdings into a predetermined number of common shares. This option is advantageous if the corporation's common stock price increases significantly, allowing preferred stockholders to benefit from potential capital appreciation. 3. Participating Preferred Stock: With participating preferred stock, shareholders not only receive their fixed dividend rate but also participate in any additional dividends declared for common shareholders. This allows preferred stockholders to enjoy extra dividends on top of their fixed rate. 4. Redeemable Preferred Stock: Certain preferred stocks come with a redemption feature that enables the corporation to buy back the shares at a predetermined price after a specified period. This provides the corporation with flexibility if they wish to retire the preferred stock at a later date. By proposing this amendment, the District of Columbia aims to grant the corporation the authority to issue and allocate preferred stock as needed, up to a maximum of 10,000,000 shares. This amendment enables the corporation to access potential funding opportunities, attract investors seeking specific rights and preferences, and strengthen its capital structure. By introducing various types of preferred stock, the District of Columbia Proposed amendment aims to provide the corporation with flexibility, enhance investor appeal, and support its overall growth strategy. Implementation of this amendment may lead to expanded investment opportunities and improved financial stability for the corporation.