Franklin Ohio Proposal to amend certificate of incorporation to authorize a preferred stock

• Category: Corporations - Public - Changes Affecting Capital Stock
• State: Multi-State
• County: Franklin
• Control #: US-CC-3-141
• Format: Word; Rich Text

Description

This sample form, a detailed Proposal to Amend Certificate of Incorporation to Authorize a Preferred Stock document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats. Title: Franklin Ohio's Proposal to Amend Certificate of Incorporation to Authorize a Preferred Stock Introduction: Franklin Ohio proposes to amend its certificate of incorporation to authorize the issuance of preferred stock, a type of equity ownership representing a different class of shares than common stock. This amendment will provide the company with flexibility in raising capital, allowing for the introduction of various types of preferred stock tailored to specific financial needs. Keywords: Franklin Ohio, proposal, amend, certificate of incorporation, preferred stock, equity ownership, common stock, capital raising, financial needs Types of Franklin Ohio Proposal to Amend Certificate of Incorporation: 1. Cumulative Preferred Stock: Under this proposal, Franklin Ohio would implement a class of preferred stock with cumulative dividends. If the company is unable to pay dividends in a particular period, the amount owed accumulates and must be paid in the future before any dividends can be distributed to common stockholders. This type of preferred stock offers investors the security of an assured dividend. Keywords: cumulative dividends, security, assured dividend 2. Convertible Preferred Stock: The proposed amendment also includes the possibility of allowing the issuance of convertible preferred stock. Convertible preferred stockholders have the option to convert their shares into a predetermined number of common shares at any time. This flexibility presents an opportunity for investors to benefit from potential future increases in the company's stock value. Keywords: convertible preferred stock, flexibility, conversion, common shares, potential future increases, stock value 3. Non-Cumulative Preferred Stock: In some cases, Franklin Ohio may propose the issuance of non-cumulative preferred stock, which does not accumulate unpaid dividends. If the company is unable to pay dividends during a particular period, they are not obligated to pay them in the future. This type of preferred stock provides a straightforward dividend structure. Keywords: non-cumulative preferred stock, unpaid dividends, dividend structure 4. Participating Preferred Stock: Another potential type of preferred stock Franklin Ohio may propose to authorize is participating preferred stock. Shareholders of participating preferred stock have the right to receive additional dividends alongside common stockholders, typically on a pro rata basis, after a certain threshold of common stock dividends is reached. This form of preferred stock allows investors to share in the company's success more directly. Keywords: participating preferred stock, additional dividends, pro rata basis, common stock dividends, share in success Conclusion: Franklin Ohio's proposal to amend its certificate of incorporation to authorize preferred stock introduces various options for equity investors regarding dividends, conversion, and participation in the company's success. This amendment aims to enhance the company's flexibility in raising capital and tailoring financial instruments to specific needs, providing opportunities for both the company and its shareholders. Keywords: amendment, flexibility, raising capital, financial instruments, shareholders

Title: Franklin Ohio's Proposal to Amend Certificate of Incorporation to Authorize a Preferred Stock Introduction: Franklin Ohio proposes to amend its certificate of incorporation to authorize the issuance of preferred stock, a type of equity ownership representing a different class of shares than common stock. This amendment will provide the company with flexibility in raising capital, allowing for the introduction of various types of preferred stock tailored to specific financial needs. Keywords: Franklin Ohio, proposal, amend, certificate of incorporation, preferred stock, equity ownership, common stock, capital raising, financial needs Types of Franklin Ohio Proposal to Amend Certificate of Incorporation: 1. Cumulative Preferred Stock: Under this proposal, Franklin Ohio would implement a class of preferred stock with cumulative dividends. If the company is unable to pay dividends in a particular period, the amount owed accumulates and must be paid in the future before any dividends can be distributed to common stockholders. This type of preferred stock offers investors the security of an assured dividend. Keywords: cumulative dividends, security, assured dividend 2. Convertible Preferred Stock: The proposed amendment also includes the possibility of allowing the issuance of convertible preferred stock. Convertible preferred stockholders have the option to convert their shares into a predetermined number of common shares at any time. This flexibility presents an opportunity for investors to benefit from potential future increases in the company's stock value. Keywords: convertible preferred stock, flexibility, conversion, common shares, potential future increases, stock value 3. Non-Cumulative Preferred Stock: In some cases, Franklin Ohio may propose the issuance of non-cumulative preferred stock, which does not accumulate unpaid dividends. If the company is unable to pay dividends during a particular period, they are not obligated to pay them in the future. This type of preferred stock provides a straightforward dividend structure. Keywords: non-cumulative preferred stock, unpaid dividends, dividend structure 4. Participating Preferred Stock: Another potential type of preferred stock Franklin Ohio may propose to authorize is participating preferred stock. Shareholders of participating preferred stock have the right to receive additional dividends alongside common stockholders, typically on a pro rata basis, after a certain threshold of common stock dividends is reached. This form of preferred stock allows investors to share in the company's success more directly. Keywords: participating preferred stock, additional dividends, pro rata basis, common stock dividends, share in success Conclusion: Franklin Ohio's proposal to amend its certificate of incorporation to authorize preferred stock introduces various options for equity investors regarding dividends, conversion, and participation in the company's success. This amendment aims to enhance the company's flexibility in raising capital and tailoring financial instruments to specific needs, providing opportunities for both the company and its shareholders. Keywords: amendment, flexibility, raising capital, financial instruments, shareholders