Mecklenburg County, located in the state of North Carolina, is currently considering a proposed amendment to Article 4 of its certificate of incorporation. This amendment aims to authorize the issuance of preferred stock. Preferred stock is a type of stock that grants certain privileges and rights to shareholders, such as preferential treatment in dividends and liquidation proceedings. The proposed amendment to Article 4 of Mecklenburg County's certificate of incorporation would allow the company to issue preferred stock, which can be offered to investors as a means to raise additional capital. This type of stock holds advantages for both the company and potential shareholders. Companies may opt for preferred stock issuance to diversify their funding sources, as it allows them to raise funds without incurring additional debt. Preferred stockholders, on the other hand, typically receive a fixed dividend payment, which is prioritized over common stockholders. This means that in unfavorable financial situations, preferred stockholders have a higher chance of receiving dividends compared to common stockholders. Additionally, in the event of liquidation, preferred stockholders may have a higher claim to the company's assets before common stockholders. There may also be different types or classes of preferred stock that Mecklenburg County is proposing to authorize through this amendment. Some common types of preferred stock include: 1. Cumulative preferred stock: This type of preferred stock accumulates any missed dividend payments, which must be paid out to shareholders before dividends can be distributed to common stockholders. 2. Convertible preferred stock: This allows preferred stockholders the option to convert their shares into a predetermined number of common shares at any time. This provides investors the opportunity to benefit from potential appreciation in the company's stock. 3. Non-cumulative preferred stock: Unlike cumulative preferred stock, non-cumulative preferred stock does not accumulate unpaid dividends. If dividends are not declared and paid in a particular period, those dividends are forfeited. 4. Participating preferred stock: This type of preferred stock allows shareholders to receive dividends at a higher rate than common stockholders, and also entitles them to additional dividends on top of their fixed rate if common stockholders also receive a dividend. With the proposed amendment to Article 4 of the certificate of incorporation, Mecklenburg County aims to diversify its capital structure and attract potential investors through the issuance of preferred stock. This would provide the county with additional financial flexibility and potentially strengthen its ability to undertake various projects or initiatives. The inclusion of different types of preferred stock within the proposed amendment provides flexibility in tailoring the terms to meet the specific needs and goals of Mecklenburg County.
Mecklenburg North Carolina Proposed amendment to Article 4 of certificate of incorporation to authorize issuance of preferred stock with copy of amendment
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The vote usually takes place at a formal meeting of the corporation (annual meeting or other) and shareholders must be advised of the proposed change before the meeting. If the shareholders approve the change to the articles of incorporation, the amended document must be attested to by the corporate secretary.
SEC. The articles of incorporation of a nonstock corporation may be amended by the vote or written assent of majority of the trustees and at least two-thirds (2/3) of the members. The original and amended articles together shall contain all provisions required by law to be set out in the articles of incorporation.
A certificate of amendment is a legal document that amends the articles of incorporation. It can amend anything from the name and address to the number of shares available for issuance and voting rights.
The articles of incorporation of a nonstock corporation may be amended by the vote or written assent of majority of the trustees and at least two-thirds (2/3) of the members.
How to Amend Articles of Incorporation Review the bylaws of the corporation.A board of directors meeting must be scheduled.Write the proposed changes.Confirm that the board meeting has enough members attending to have a quorum so the amendment can be voted on. Propose the amendment during the board meeting.
The meeting of the stockholders must first take place and the issue of the amendment must be assented to by stockholders representing at least 2/3 of the outstanding capital stock. Thereafter, it must be approved by at least a majority of the board of directors and duly certified by the Corporate Secretary.
- A private corporation may extend or shorten its term as stated in the articles of incorporation when approved by a majority vote of the board of directors or trustees and ratified at a meeting by the stockholders representing at least two-thirds (2/3) of the outstanding capital stock or by at least two-thirds (2/3)
The Notice of Change (Form 1) is available to be filled in manually and filed with the Province of Ontario. The Notice of Change (Form 1) can be mailed to the Provincial office at 2nd Floor, 393 University Avenue, Toronto, ON M5G 1T6.
A corporation may change its name by merely amending its charter in the manner prescribed by law. The change of name of the corporation does not result in dissolution. The changing of the name of a corporation is no more the creation of a corporation than the changing of the name of a natural person.