Illinois Proposal to Amend Articles of Incorporation: Reverse Stock Split and Share Dividend In Illinois, a proposal to amend the articles of incorporation aims to implement a reverse stock split of common stock and authorize a share dividend on common stock. This proposal involves utilizing two financial mechanisms to effect changes in the company's stock structure and distribution. A reverse stock split, which is part of the proposal, is a strategic maneuver undertaken by a company to consolidate its outstanding shares. This process involves reducing the number of shares available in the market while increasing the price of each individual share proportionally. By doing so, companies aim to enhance the perceived value of their stock, attract new investors, and potentially meet certain stock exchange requirements. Implementing a reverse stock split can also help in avoiding potential delisting issues that may arise if a company's stock price falls below a certain threshold. The second component of the Illinois proposal is to authorize a share dividend on common stock. A share dividend, often referred to as a stock dividend, is a distribution of additional shares to existing shareholders of a company. Unlike cash dividends that provide shareholders with cash payments, a stock dividend grants investors additional shares for each stock they already own. This is typically done in proportion to their existing holdings. The proposed amendment's objective through a share dividend is to reward existing shareholders by granting them additional ownership interests in the company without requiring them to invest additional funds. Share dividends can indicate a company's financial strength and serve as a tax-efficient method to distribute profits. It is important to note that different types of proposals to amend articles of incorporation can involve various provisions and purposes. However, in the context of Illinois and the specific keywords provided, the focus lies on the reverse stock split and share dividend. These mechanisms can potentially benefit companies by consolidating their shares and increasing the stock's value while rewarding existing shareholders. In conclusion, the Illinois proposal to amend articles of incorporation seeks to effect a reverse stock split of common stock and authorize a share dividend on common stock. By implementing these changes, companies aim to increase the perceived value of their stock, attract new investors, meet stock exchange requirements, and reward existing shareholders with additional ownership interests.