Delaware Proposed amendment to the certificate of incorporation to authorize up to 10,000,000 shares of preferred stock with amendment

• Category: Corporations - Public - Changes Affecting Capital Stock
• State: Multi-State
• Control #: US-CC-3-168
• Format: Word; Rich Text

Description

This sample form, a detailed Proposed Amendment to the Certificate of Incorporation to Authorize Up to 10,000,000 Shares of Preferred Stock w/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. The Delaware Proposed amendment to the certificate of incorporation seeks to authorize up to 10,000,000 shares of preferred stock with certain amendments. This amendment can have different types or classes of preferred stock, distinguished by their rights, preferences, and privileges. Some commonly found types of preferred stock authorized under such amendments may include: 1. Voting Preferred Stock: This type of preferred stock grants the holders the right to vote alongside common stockholders on key matters of the company, such as electing board members or approving mergers. 2. Cumulative Preferred Stock: Holders of cumulative preferred stock are entitled to receive unpaid dividends from previous periods before common stockholders can receive any distributions. If dividends are skipped or unpaid, they will accumulate and must be paid before any dividends can be distributed to common shareholders. 3. Convertible Preferred Stock: Convertible preferred stock provides the option for the holder to convert their shares into a predetermined number of common shares. These conversions are usually allowed at the discretion of the shareholder or at specific terms and conditions outlined in the amendment. 4. Non-Convertible Preferred Stock: In contrast to convertible preferred stock, non-convertible preferred stock does not have the option to be converted into common shares. Holders of non-convertible preferred stock typically receive fixed dividends and have priority over common shareholders in the event of liquidation. 5. Callable Preferred Stock: Callable preferred stock allows the issuing company to redeem or call back the shares after a specified date or under certain conditions. This gives the company the flexibility to repurchase the shares if necessary. 6. Participating Preferred Stock: Holders of participating preferred stock are entitled to receive additional dividends in addition to the fixed dividends specified for the shares. These additional dividends are often distributed to participating preferred shareholders after common shareholders receive a certain dividend amount. 7. Adjustable Rate Preferred Stock: Adjustable rate preferred stock has dividends that can fluctuate based on changes in a specified interest rate index. This type of preferred stock may be desirable in an environment with fluctuating interest rates, as it allows investors to benefit from increasing rates. It is important to note that the actual types of preferred stock authorized under the proposed amendment may differ and can be tailored to the specific needs and objectives of the company seeking the amendment.

The Delaware Proposed amendment to the certificate of incorporation seeks to authorize up to 10,000,000 shares of preferred stock with certain amendments. This amendment can have different types or classes of preferred stock, distinguished by their rights, preferences, and privileges. Some commonly found types of preferred stock authorized under such amendments may include: 1. Voting Preferred Stock: This type of preferred stock grants the holders the right to vote alongside common stockholders on key matters of the company, such as electing board members or approving mergers. 2. Cumulative Preferred Stock: Holders of cumulative preferred stock are entitled to receive unpaid dividends from previous periods before common stockholders can receive any distributions. If dividends are skipped or unpaid, they will accumulate and must be paid before any dividends can be distributed to common shareholders. 3. Convertible Preferred Stock: Convertible preferred stock provides the option for the holder to convert their shares into a predetermined number of common shares. These conversions are usually allowed at the discretion of the shareholder or at specific terms and conditions outlined in the amendment. 4. Non-Convertible Preferred Stock: In contrast to convertible preferred stock, non-convertible preferred stock does not have the option to be converted into common shares. Holders of non-convertible preferred stock typically receive fixed dividends and have priority over common shareholders in the event of liquidation. 5. Callable Preferred Stock: Callable preferred stock allows the issuing company to redeem or call back the shares after a specified date or under certain conditions. This gives the company the flexibility to repurchase the shares if necessary. 6. Participating Preferred Stock: Holders of participating preferred stock are entitled to receive additional dividends in addition to the fixed dividends specified for the shares. These additional dividends are often distributed to participating preferred shareholders after common shareholders receive a certain dividend amount. 7. Adjustable Rate Preferred Stock: Adjustable rate preferred stock has dividends that can fluctuate based on changes in a specified interest rate index. This type of preferred stock may be desirable in an environment with fluctuating interest rates, as it allows investors to benefit from increasing rates. It is important to note that the actual types of preferred stock authorized under the proposed amendment may differ and can be tailored to the specific needs and objectives of the company seeking the amendment.