Maine Authority to Issue Additional Shares

• Category: Corporations - Mergers and Acquisitions
• State: Multi-State
• Control #: US-CC-12-1931
• Format: Word; Rich Text

Description

This form may be used by a company's Board of Directors to allow for the purchase of additional stock beyond the original agreement with a second party. The form specifically states the conditions under which the additional purchase will be allowed. Maine Authority to Issue Additional Shares refers to the legal power granted to a corporation incorporated in the state of Maine to increase its authorized share capital. This authority allows the company to issue and sell additional shares of its stock beyond what was initially authorized in its articles of incorporation. The Maine Business Corporation Act (Title 13-C, Subtitle 10, Chapter 13), which governs the operations of corporations in the state, provides specific provisions related to the authority to issue additional shares. This authority is usually granted to the board of directors of the corporation, subject to certain limitations and requirements outlined in the Act. There are different types of Maine Authority to Issue Additional Shares, including: 1. General Authority: Under this type, the corporation's board of directors may issue additional shares within the limits specified in the articles of incorporation and as authorized by the shareholders. The general authority usually allows the board to determine the number, class, and terms of the additional shares to be issued. 2. Specific Authority: Certain circumstances may require the corporation to issue additional shares for specific purposes, such as raising capital for expansion, financing acquisitions, or issuing employee stock options. Specific authority is granted by the board of directors through a specific resolution to authorize the issuance of additional shares for a particular purpose. 3. Preemptive Rights: Preemptive rights give existing shareholders the first opportunity to purchase additional shares before they are offered to external investors. Maine's law allows corporations to grant or deny preemptive rights to shareholders through provisions in their articles of incorporation. This type of authority ensures that existing shareholders have a fair opportunity to maintain their proportional ownership in the company. 4. Voting Trusts or Agreements: Maine law also permits the creation of voting trusts or agreements that consolidate the voting power of shares. These trusts or agreements may be authorized by the corporation's board of directors and require the approval of the shareholders. They allow shareholders to delegate their voting rights to a trustee or group of trustees, providing a mechanism for centralized decision-making. In conclusion, the Maine Authority to Issue Additional Shares empowers corporations to increase their authorized share capital and issue more shares. It encompasses general and specific authority, as well as provisions for preemptive rights and voting trusts/agreements. Complying with the Maine Business Corporation Act ensures that the process of issuing additional shares is done in a transparent and legally sound manner.

Maine Authority to Issue Additional Shares refers to the legal power granted to a corporation incorporated in the state of Maine to increase its authorized share capital. This authority allows the company to issue and sell additional shares of its stock beyond what was initially authorized in its articles of incorporation. The Maine Business Corporation Act (Title 13-C, Subtitle 10, Chapter 13), which governs the operations of corporations in the state, provides specific provisions related to the authority to issue additional shares. This authority is usually granted to the board of directors of the corporation, subject to certain limitations and requirements outlined in the Act. There are different types of Maine Authority to Issue Additional Shares, including: 1. General Authority: Under this type, the corporation's board of directors may issue additional shares within the limits specified in the articles of incorporation and as authorized by the shareholders. The general authority usually allows the board to determine the number, class, and terms of the additional shares to be issued. 2. Specific Authority: Certain circumstances may require the corporation to issue additional shares for specific purposes, such as raising capital for expansion, financing acquisitions, or issuing employee stock options. Specific authority is granted by the board of directors through a specific resolution to authorize the issuance of additional shares for a particular purpose. 3. Preemptive Rights: Preemptive rights give existing shareholders the first opportunity to purchase additional shares before they are offered to external investors. Maine's law allows corporations to grant or deny preemptive rights to shareholders through provisions in their articles of incorporation. This type of authority ensures that existing shareholders have a fair opportunity to maintain their proportional ownership in the company. 4. Voting Trusts or Agreements: Maine law also permits the creation of voting trusts or agreements that consolidate the voting power of shares. These trusts or agreements may be authorized by the corporation's board of directors and require the approval of the shareholders. They allow shareholders to delegate their voting rights to a trustee or group of trustees, providing a mechanism for centralized decision-making. In conclusion, the Maine Authority to Issue Additional Shares empowers corporations to increase their authorized share capital and issue more shares. It encompasses general and specific authority, as well as provisions for preemptive rights and voting trusts/agreements. Complying with the Maine Business Corporation Act ensures that the process of issuing additional shares is done in a transparent and legally sound manner.