The Virginia Amendment to Articles of Incorporation allows a corporation to modify the terms of its authorized preferred stock. This amendment is crucial for businesses seeking to adapt their financial structure and address evolving market needs. By altering the terms, companies can enhance their flexibility, potentially attracting investors or accommodating changes in the business landscape. There are several specific types or provisions that a Virginia Amendment to Articles of Incorporation can modify regarding authorized preferred stock. Here are some common types: 1. Convertibility: This amendment may change the conversion rights of preferred stock, allowing it to be converted into common stock or other securities, providing investors greater flexibility in their investment strategy. 2. Dividends: The amendment can adjust the dividend rights of preferred stock, determining the rate and frequency at which preferred shareholders receive dividends. This flexibility addresses cash flow considerations and the corporation's financial performance. 3. Liquidation Preference: The amendment may modify the liquidation preference of the preferred stock, specifying the priority and amount preferred shareholders receive in the event of liquidation, dissolution, or winding up of the company. 4. Voting Rights: This provision allows the amendment to modify or eliminate the voting rights of preferred stockholders. Such changes can either limit or expand their ability to participate in corporate decision-making processes. 5. Redemption Rights: The Virginia Amendment to Articles of Incorporation can change the terms related to the redemption of preferred stock. It may alter the conditions, timing, and price at which the corporation can repurchase or redeem the preferred shares. 6. Cumulative vs. Non-cumulative Dividends: This amendment may adjust whether any unpaid dividends on preferred stock will accumulate or be lost in subsequent periods. The distinction affects preferred stockholders' entitlements and the corporation's financial obligations. By filing a Virginia Amendment to Articles of Incorporation to change the terms of the authorized preferred stock, corporations ensure their ability to adapt to changing business realities. These amendments play a pivotal role in shaping the financial structure of a company and meeting the expectations and demands of shareholders and potential investors.