Wisconsin Proposal for the Stock Split and Increase in the Authorized Number of Shares

• Category: Corporations - Public - Changes Affecting Capital Stock
• State: Multi-State
• Control #: US-CC-3-212J
• Format: Word; Rich Text

Description

This sample form, a detailed Proposal for the Stock Split and Increase in the Authorized Number of Shares 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 Wisconsin Proposal for the Stock Split and Increase in the Authorized Number of Shares is a corporate action that allows a company based in Wisconsin to divide its existing shares into multiple shares. This proposal is initiated with the intention of increasing the number of outstanding shares and potentially lowering the price per share. By doing so, the company aims to make its shares more affordable and accessible to investors. Stock splits are commonly executed by companies when they believe that the existing stock price is too high, resulting in limited participation from investors. By splitting the shares, companies hope to generate renewed interest from potential shareholders who may find the lower price more attractive. This strategy can potentially increase liquidity in the market, as more investors may be inclined to trade the stock. The Wisconsin Proposal for the Stock Split and Increase in the Authorized Number of Shares involves certain steps that need to be followed. First, the company's board of directors will put forth the proposal, seeking approval from the shareholders. The proposal will outline the ratio at which the shares will be split, such as 2-for-1 or 3-for-1, indicating that for every existing share held, shareholders will receive two or three new shares. In addition to the stock split, the Wisconsin Proposal also includes an increase in the authorized number of shares. This means that the company seeks approval to issue more shares than its current limit. This increase allows the company to have a larger pool of shares available for issuance in the future, providing flexibility for potential capital raising activities, mergers or acquisitions, employee stock options, or stock-based compensation plans. It is important to note that an increase in the authorized number of shares does not necessarily mean an immediate issuance of new shares; it simply grants the company the authority to do so at a later date. The Wisconsin Proposal for the Stock Split and Increase in the Authorized Number of Shares can also have different variations based on the ratio chosen for the stock split. For example, a 2-for-1 stock split will result in shareholders receiving two shares for each share they currently hold. Alternatively, a 3-for-1 split would result in three new shares for each existing share, effectively tripling the number of shares owned by shareholders. Different multiples, like 4-for-1 or 5-for-1, could also be proposed, depending on the individual company's objectives and market conditions. In conclusion, the Wisconsin Proposal for the Stock Split and Increase in the Authorized Number of Shares is a corporate action undertaken by Wisconsin-based companies to divide existing shares into multiple shares, thereby increasing the number of outstanding shares. This proposal aims to make the company's shares more affordable and accessible to investors, potentially attracting greater market participation. By including an increase in the authorized number of shares, the company gains flexibility for future capital raising or strategic activities. Different types of proposals can exist depending on the chosen ratio for the stock split, such as 2-for-1, 3-for-1, or other multiples.