Resolution by Shareholders Increasing Capital Stock is a resolution adopted by the shareholders of a company that authorizes the increase of the company’s issued and outstanding shares of common or preferred stock. This resolution is typically used to increase the equity capital of the company, and it can be done by either issuing newly authorized shares or by reissuing previously issued, but unis sued shares. There are two types of Resolution by Shareholders Increasing Capital Stock: Non-Participating Preferred Stock and Participating Preferred Stock. Non-Participating Preferred Stock is a resolution authorizing the issuance of preferred stock that does not provide the shareholders with any additional rights or privileges, other than those specified in the resolution. Participating Preferred Stock is a resolution authorizing the issuance of preferred stock that provides the shareholders with additional rights or privileges, such as the right to participate in the company’s profits or the right to vote on certain matters.