Harris Texas Proposal to amend certificate of incorporation to authorize a preferred stock

• Category: Corporations - Public - Changes Affecting Capital Stock
• State: Multi-State
• County: Harris
• 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. The Harris Texas Proposal to Amend Certificate of Incorporation to Authorize Preferred Stock is an important decision put forth by the Harris Texas Corporation for consideration. This proposed amendment aims to grant the corporation the authority to issue preferred stock as part of its capital structure. This article delves into the intricacies of the proposal, its benefits, and highlights potential types of preferred stock that could be incorporated if the amendment were to pass. Preferred stock is a type of equity security that carries additional rights and privileges compared to common stock. By amending the certificate of incorporation, Harris Texas Corporation seeks to expand its options for raising capital and potentially enhancing shareholder value. The proposal implies that a new class of stock, known as preferred stock, will be introduced alongside the existing common stock. Preferred stock typically grants its holders preferential treatment in certain aspects, such as dividend distributions and liquidation preferences. While common stockholders are only entitled to residual dividends, preferred stockholders have a fixed dividend rate, often paid before common stockholders receive any dividends. Moreover, in the event of liquidation or company dissolution, preferred stockholders usually have priority in receiving their investment back compared to common stockholders. If the Harris Texas Proposal to Amend Certificate of Incorporation to Authorize Preferred Stock is successful, the corporation may consider various types of preferred stock to tailor it to specific investor preferences. Common types of preferred stock encompass: 1. Cumulative preferred stock: This type of preferred stock ensures that any unpaid dividends accumulate and must be paid out to shareholders before common stockholders receive any dividends, even if dividends are skipped in certain years. 2. Convertible preferred stock: This preferred stock provides the option for shareholders to convert their holdings into a specified number of common shares at pre-established conversion rates. This feature allows preferred stockholders to benefit from any potential appreciation in the value of the common stock. 3. Participating preferred stock: Holders of participating preferred stock receive an additional dividend on top of the fixed dividend. In case of company liquidation, participating preferred stockholders also have the right to receive their investment back and then share the remaining assets with common stockholders. 4. Adjustable-rate preferred stock: This type of preferred stock offers variable dividends, wherein the dividend rate adjusts based on a pre-determined benchmark. For example, the dividend rate might change in response to fluctuations in the prevailing interest rates. The Harris Texas Proposal to Amend Certificate of Incorporation to Authorize Preferred Stock signifies an important step in the evolution of the corporation's capital structure. By incorporating preferred stock, Harris Texas Corporation aims to enhance flexibility in fundraising, attract a broader range of investors, and potentially strengthen shareholder returns.

The Harris Texas Proposal to Amend Certificate of Incorporation to Authorize Preferred Stock is an important decision put forth by the Harris Texas Corporation for consideration. This proposed amendment aims to grant the corporation the authority to issue preferred stock as part of its capital structure. This article delves into the intricacies of the proposal, its benefits, and highlights potential types of preferred stock that could be incorporated if the amendment were to pass. Preferred stock is a type of equity security that carries additional rights and privileges compared to common stock. By amending the certificate of incorporation, Harris Texas Corporation seeks to expand its options for raising capital and potentially enhancing shareholder value. The proposal implies that a new class of stock, known as preferred stock, will be introduced alongside the existing common stock. Preferred stock typically grants its holders preferential treatment in certain aspects, such as dividend distributions and liquidation preferences. While common stockholders are only entitled to residual dividends, preferred stockholders have a fixed dividend rate, often paid before common stockholders receive any dividends. Moreover, in the event of liquidation or company dissolution, preferred stockholders usually have priority in receiving their investment back compared to common stockholders. If the Harris Texas Proposal to Amend Certificate of Incorporation to Authorize Preferred Stock is successful, the corporation may consider various types of preferred stock to tailor it to specific investor preferences. Common types of preferred stock encompass: 1. Cumulative preferred stock: This type of preferred stock ensures that any unpaid dividends accumulate and must be paid out to shareholders before common stockholders receive any dividends, even if dividends are skipped in certain years. 2. Convertible preferred stock: This preferred stock provides the option for shareholders to convert their holdings into a specified number of common shares at pre-established conversion rates. This feature allows preferred stockholders to benefit from any potential appreciation in the value of the common stock. 3. Participating preferred stock: Holders of participating preferred stock receive an additional dividend on top of the fixed dividend. In case of company liquidation, participating preferred stockholders also have the right to receive their investment back and then share the remaining assets with common stockholders. 4. Adjustable-rate preferred stock: This type of preferred stock offers variable dividends, wherein the dividend rate adjusts based on a pre-determined benchmark. For example, the dividend rate might change in response to fluctuations in the prevailing interest rates. The Harris Texas Proposal to Amend Certificate of Incorporation to Authorize Preferred Stock signifies an important step in the evolution of the corporation's capital structure. By incorporating preferred stock, Harris Texas Corporation aims to enhance flexibility in fundraising, attract a broader range of investors, and potentially strengthen shareholder returns.