Washington Designation of Rights, Privileges and Preferences of Preferred Stock

• Category: Corporations - Public - Anti-takeover
• State: Multi-State
• Control #: US-CC-13-278I
• Format: Word; Rich Text

Description

This is a multi-state form covering the subject matter of the title. The Washington Designation of Rights, Privileges, and Preferences of Preferred Stock is a legal instrument that outlines the specific rights, privileges, and preferences granted to holders of preferred stock issued by a Washington state corporation. Preferred stock is a type of equity security that offers certain advantages and unique features to its shareholders. In Washington state, there are several types of Designations of Rights, Privileges, and Preferences of Preferred Stock, each specifying distinct characteristics and benefits. Some commonly encountered types include: 1. Cumulative Preferred Stock: This type of preferred stock grants shareholders the right to receive unpaid dividends even if they have not been declared by the corporation in previous years. Accumulated dividends are usually paid to cumulative preferred stockholders before any dividends are distributed to common stockholders. 2. Convertible Preferred Stock: Convertible preferred stock provides shareholders with the option to convert their preferred shares into a predetermined number of common shares. This feature allows investors to benefit from potential capital appreciation and participate in the company's growth. 3. Participating Preferred Stock: Holders of participating preferred stock are entitled to receive their preferred dividend and have the right to an additional dividend alongside common stockholders. This additional dividend is usually calculated based on a predetermined rate or a formula specified in the Designation. 4. Non-cumulative Preferred Stock: Non-cumulative preferred stock does not accumulate unpaid dividends. If a dividend is not declared for a particular period, shareholders cannot claim those dividends in the future. Any unpaid dividends are lost. 5. Redeemable Preferred Stock: Redeemable preferred stock provides the issuing corporation with the right to repurchase the shares at a predetermined price or within a specific time frame. This allows the company to regain full ownership of the shares under certain circumstances. 6. Adjustable Rate Preferred Stock: Adjustable rate preferred stock offers shareholders a floating dividend rate that adjusts periodically. The dividend rate may be linked to a specified benchmark, such as the Treasury bill rate or a market index, ensuring that investors receive a variable return. It is important to note that the specific rights, privileges, and preferences conferred by a Washington Designation of Rights, Privileges, and Preferences of Preferred Stock may vary depending on the provisions set forth in the corporate bylaws or articles of incorporation. It is advisable to consult legal professionals familiar with Washington state corporate law when drafting or determining the terms of such Designations.

The Washington Designation of Rights, Privileges, and Preferences of Preferred Stock is a legal instrument that outlines the specific rights, privileges, and preferences granted to holders of preferred stock issued by a Washington state corporation. Preferred stock is a type of equity security that offers certain advantages and unique features to its shareholders. In Washington state, there are several types of Designations of Rights, Privileges, and Preferences of Preferred Stock, each specifying distinct characteristics and benefits. Some commonly encountered types include: 1. Cumulative Preferred Stock: This type of preferred stock grants shareholders the right to receive unpaid dividends even if they have not been declared by the corporation in previous years. Accumulated dividends are usually paid to cumulative preferred stockholders before any dividends are distributed to common stockholders. 2. Convertible Preferred Stock: Convertible preferred stock provides shareholders with the option to convert their preferred shares into a predetermined number of common shares. This feature allows investors to benefit from potential capital appreciation and participate in the company's growth. 3. Participating Preferred Stock: Holders of participating preferred stock are entitled to receive their preferred dividend and have the right to an additional dividend alongside common stockholders. This additional dividend is usually calculated based on a predetermined rate or a formula specified in the Designation. 4. Non-cumulative Preferred Stock: Non-cumulative preferred stock does not accumulate unpaid dividends. If a dividend is not declared for a particular period, shareholders cannot claim those dividends in the future. Any unpaid dividends are lost. 5. Redeemable Preferred Stock: Redeemable preferred stock provides the issuing corporation with the right to repurchase the shares at a predetermined price or within a specific time frame. This allows the company to regain full ownership of the shares under certain circumstances. 6. Adjustable Rate Preferred Stock: Adjustable rate preferred stock offers shareholders a floating dividend rate that adjusts periodically. The dividend rate may be linked to a specified benchmark, such as the Treasury bill rate or a market index, ensuring that investors receive a variable return. It is important to note that the specific rights, privileges, and preferences conferred by a Washington Designation of Rights, Privileges, and Preferences of Preferred Stock may vary depending on the provisions set forth in the corporate bylaws or articles of incorporation. It is advisable to consult legal professionals familiar with Washington state corporate law when drafting or determining the terms of such Designations.