New York Proposal to amend articles of incorporation to effect a reverse stock split of common stock and authorize a share dividend on common stock

• Category: Corporations - Public - Changes Affecting Capital Stock
• State: Multi-State
• Control #: US-CC-3-214E
• Format: Word; Rich Text

Description

This sample form, a detailed Proposal to Amend the Amended and Restated Articles of Incorporation to Effect a Reverse Stock Split of Common Stock and to Authorize a Share Dividend on the Common Stock document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats. The New York Proposal to amend articles of incorporation aims to make significant changes to a company's stock structure and distribute dividends to shareholders. This proposal comprises two significant elements: a reverse stock split and the authorization of a share dividend on common stock. Here is a detailed description of each component: 1. Reverse Stock Split: A reverse stock split is a corporate action that consolidates a company's outstanding shares, resulting in a reduction of the total number of shares available. The objective of a reverse stock split is often to increase the price per share, thereby making the company's stock more attractive to investors. This proposal seeks to effect a reverse stock split of the common stock, which will involve combining multiple shares into one. For example, a 1-for-5 reverse stock split would convert five existing shares into one share. The ratio determined for the reverse stock split will be specified in the proposal. 2. Share Dividend on Common Stock: In addition to the reverse stock split, this proposal also involves authorizing a share dividend on common stock. A share dividend, commonly known as a stock dividend, involves the distribution of additional shares of common stock to existing shareholders. These additional shares are usually allocated based on the number of shares held by each shareholder. The purpose of a share dividend is to provide shareholders with additional ownership interest in the company without altering their proportional ownership. By allowing for a share dividend, this proposal aims to acknowledge and reward existing shareholders for their investment. Keywords: New York, proposal, amend articles of incorporation, reverse stock split, common stock, authorize, share dividend, stock structure, shareholders, corporate action, outstanding shares, price per share, attractive, investors, 1-for-5, existing shares, ratio, additional shares, ownership interest, proportional ownership. Different types of New York proposals to amend articles of incorporation may include variants of the reverse stock split and share dividend. For example: 1. Partial Reverse Stock Split: This type of proposal may involve a consolidation of only a portion of the existing shares, while the remaining shares remain unaffected. 2. Alternating Reverse Stock Split Ratio: The proposal may suggest different reverse stock split ratios for different classes of common stock, allowing for differential treatment based on share class. 3. Multiple Share Dividends: Instead of a single share dividend, the proposal might authorize multiple dividend distributions over a specified period, providing shareholders with recurring benefits. Keywords: New York proposals, amend articles of incorporation, partial, alternating, classes of common stock, multiple dividend distributions, recurring benefits.

The New York Proposal to amend articles of incorporation aims to make significant changes to a company's stock structure and distribute dividends to shareholders. This proposal comprises two significant elements: a reverse stock split and the authorization of a share dividend on common stock. Here is a detailed description of each component: 1. Reverse Stock Split: A reverse stock split is a corporate action that consolidates a company's outstanding shares, resulting in a reduction of the total number of shares available. The objective of a reverse stock split is often to increase the price per share, thereby making the company's stock more attractive to investors. This proposal seeks to effect a reverse stock split of the common stock, which will involve combining multiple shares into one. For example, a 1-for-5 reverse stock split would convert five existing shares into one share. The ratio determined for the reverse stock split will be specified in the proposal. 2. Share Dividend on Common Stock: In addition to the reverse stock split, this proposal also involves authorizing a share dividend on common stock. A share dividend, commonly known as a stock dividend, involves the distribution of additional shares of common stock to existing shareholders. These additional shares are usually allocated based on the number of shares held by each shareholder. The purpose of a share dividend is to provide shareholders with additional ownership interest in the company without altering their proportional ownership. By allowing for a share dividend, this proposal aims to acknowledge and reward existing shareholders for their investment. Keywords: New York, proposal, amend articles of incorporation, reverse stock split, common stock, authorize, share dividend, stock structure, shareholders, corporate action, outstanding shares, price per share, attractive, investors, 1-for-5, existing shares, ratio, additional shares, ownership interest, proportional ownership. Different types of New York proposals to amend articles of incorporation may include variants of the reverse stock split and share dividend. For example: 1. Partial Reverse Stock Split: This type of proposal may involve a consolidation of only a portion of the existing shares, while the remaining shares remain unaffected. 2. Alternating Reverse Stock Split Ratio: The proposal may suggest different reverse stock split ratios for different classes of common stock, allowing for differential treatment based on share class. 3. Multiple Share Dividends: Instead of a single share dividend, the proposal might authorize multiple dividend distributions over a specified period, providing shareholders with recurring benefits. Keywords: New York proposals, amend articles of incorporation, partial, alternating, classes of common stock, multiple dividend distributions, recurring benefits.