A proposed amendment to Article 4 of the certificate of incorporation in Washington aims to authorize the issuance of preferred stock. This amendment introduces the possibility of issuing shares of preferred stock, which holds certain advantages over common stock. Preferred stockholders have a higher position in the company's capital structure, meaning they have priority in receiving dividends and liquidation proceeds. Additionally, preferred stockholders typically have voting rights, along with the ability to convert their preferred shares into common stock. By amending Article 4, Washington companies can diversify their financing options and attract potential investors by offering preferred stock as an alternative investment vehicle. This provides flexibility in raising capital and allows companies to customize their financial strategies to meet specific needs. Furthermore, issuing preferred stock provides companies with an alternative way to reward investors and retain control over decision-making processes. The Washington Proposed amendment to Article 4 of the certificate of incorporation encompasses various types of preferred stock. Some common examples include: 1. Cumulative Preferred Stock: This type of preferred stock guarantees that any missed dividend payments accumulate and must be paid to the preferred stockholders before any dividends can be distributed to common stockholders. 2. Convertible Preferred Stock: With this type of preferred stock, holders have the option to convert their preferred shares into common stock at a predetermined conversion ratio. Convertible preferred stock provides an opportunity for investors to benefit from potential future price appreciation of the company's common stock. 3. Participating Preferred Stock: This class of preferred stock grants holders the right to receive additional dividends beyond their predetermined rate if the company distributes dividends to common stockholders. Participating preferred stockholders can participate in additional dividend distributions and potentially earn higher returns. 4. Redeemable Preferred Stock: Unlike other types of preferred stock, redeemable preferred stock can be bought back by the company at a predetermined price and specific dates. This allows the company to regain control over the shares issued and manage its capital structure more flexibly. These are just a few examples of the various types of preferred stock that can be authorized through the proposed amendment to Article 4 of the certificate of incorporation in Washington. It is essential to consult legal and financial professionals to determine the specific terms and conditions that should be included in the amendment to align with the company's unique objectives and ensure compliance with applicable regulations.