The North Carolina Proposed Amendment to Article 4 of the Certificate of Incorporation aims to authorize the issuance of preferred stock for corporations registered in the state. This amendment allows companies to offer preferred shares with specific rights and privileges to shareholders, which can differ from common stockholders. Preferred stock is a type of equity security that grants certain advantages to its holders. These advantages can include priority over common stockholders in terms of dividend payments and liquidation proceeds, a fixed dividend rate, and the possibility of conversion into common stock at a predetermined ratio. By proposing this amendment, North Carolina seeks to attract more investors and provide corporations with flexibility in raising capital. The preferred stock can be tailored to match the requirements and preferences of different investors, such as institutional investors or venture capitalists, attracting a wider range of potential shareholders. The proposed amendment to Article 4 of the certificate of incorporation signifies a significant change for corporations operating in North Carolina. It expands their capital-raising options by granting them the authority to issue preferred stock. This amendment expands the range of financial instruments available to companies, allowing them to better structure their capitalization and meet the specific needs of their business. Different types of preferred stock that could be authorized under this amendment include cumulative preferred stock, convertible preferred stock, participating preferred stock, and adjustable-rate preferred stock, among others. Cumulative preferred stock ensures that any unpaid dividends accumulate and must be paid before any dividends can be distributed to common stockholders. Convertible preferred stock allows the shareholder to convert their preferred shares into common stock at a predetermined conversion ratio. Participating preferred stock provides the shareholder with the right to receive additional dividends alongside common shareholders if the company performs well. Adjustable-rate preferred stock offers a variable dividend rate that adjusts periodically based on market conditions. To view the comprehensive copy of the proposed amendment to Article 4 of the certificate of incorporation, please refer to the official North Carolina government website or consult legal counsel. It is crucial for businesses considering the issuance of preferred stock to review the specifics of the proposed amendment and understand its implications for their operations.