The North Carolina Proposed amendment to the certificate of incorporation aims to authorize up to 10,000,000 shares of preferred stock, with an amendment. This proposed amendment holds relevance for companies operating in North Carolina that seek to expand their capital structure and provide additional investment opportunities. Preferred stock is a type of equity security that offers certain advantages over common stock. The proposed amendment allows for the creation and issuance of up to 10,000,000 shares of preferred stock to interested investors. This amendment empowers companies in North Carolina to designate and issue preferred stock in accordance with their business needs and goals. The preferred stock issued under this proposed amendment may come in different types, each with its unique characteristics and preferences. Some potential types of preferred stock that may be authorized include: 1. Cumulative Preferred Stock: This type of preferred stock grants shareholders the right to receive dividends even if the company does not distribute dividends in a particular year. The unpaid dividends accumulate and must be paid in the future before common stockholders receive any dividends. 2. Convertible Preferred Stock: This stock enables shareholders to convert their preferred shares into a specified number of common shares. The conversion ratio and terms are typically determined at the time of issuance, providing investors with the flexibility to benefit from potential future growth in the company's value. 3. Participating Preferred Stock: With participating preferred stock, shareholders not only receive regular dividends but also participate in additional dividends distributed to common stockholders. This type of preferred stock allows investors to enjoy the benefits of both preferred and common stock. 4. Non-Cumulative Preferred Stock: Unlike cumulative preferred stock, non-cumulative preferred stock does not accumulate unpaid dividends. If the company does not distribute dividends in a certain year, shareholders do not have claims to those dividends in the future. 5. Redeemable Preferred Stock: This type of preferred stock grants the company the right to repurchase shares from shareholders at a predetermined price or within a specified timeframe. This allows the company to manage its capital structure and potentially retire preferred shares when necessary. The North Carolina proposed amendment to authorize up to 10,000,000 shares of preferred stock brings greater flexibility to businesses operating within the state. By offering various types of preferred stock, companies can tailor their capital structure to attract different types of investors and strategically manage their financial resources. This amendment opens up new avenues for growth, investment, and future business opportunities for North Carolina-based companies.