The Florida Proposed Amendment to articles of incorporation regarding preemptive rights aims to modify the existing provisions related to shareholders' preemptive rights in the state of Florida. Preemptive rights grant current shareholders the opportunity to maintain their proportional ownership in a company by allowing them to purchase additional shares before they are offered to outside investors or the public. This amendment seeks to provide additional clarity and flexibility to the preemptive rights' framework in Florida. Under the Florida Proposed Amendment, there are two types of changes that can be made to the articles of incorporation regarding preemptive rights: 1. Expansion of Preemptive Rights: This amendment allows companies to increase the scope of preemptive rights given to existing shareholders. It provides an option to specify the types of securities that may trigger preemptive rights, such as common shares, preferred shares, or other equity instruments. By including different classes of shares, companies can tailor their preemptive rights provisions to suit their specific needs. 2. Limitation or Elimination of Preemptive Rights: Conversely, the Florida Proposed Amendment also offers the possibility of restricting or completely removing preemptive rights from the articles of incorporation. This change can be particularly useful in situations where companies may want to raise capital quickly, without being obligated to offer new shares to existing shareholders first. Limiting or eliminating preemptive rights can provide flexibility for businesses seeking significant funding through alternative means such as private placements or public offerings. By implementing the Florida Proposed Amendment to articles of incorporation regarding preemptive rights, companies can effectively manage their capital structure and adapt to changing financing strategies. These modifications to the preemptive rights provisions not only provide greater clarity but also allow businesses to customize their corporate governance practices based on their unique requirements and potential growth opportunities.