Hennepin Minnesota Proposal to amend certificate of incorporation to authorize a preferred stock

• Category: Corporations - Public - Changes Affecting Capital Stock
• State: Multi-State
• County: Hennepin
• 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. Hennepin County, Minnesota is proposing to amend its certificate of incorporation to include the authorization of preferred stock. A preferred stock is a type of ownership in a corporation that gives shareholders certain privileges and advantages over common stockholders. The proposed amendment to authorize preferred stock in Hennepin County would offer specific benefits to shareholders, such as priority in receiving dividends and assets in case of liquidation. The holders of preferred stock would have a fixed dividend rate, which is often higher than the dividend paid to common stockholders. Additionally, preferred stockholders typically have no voting rights in the company's decision-making process. Different types of preferred stock that Hennepin County may consider incorporating into its certificate of incorporation include: 1. Cumulative preferred stock: This type of preferred stock ensures that any unpaid dividends accumulate and must be paid to shareholders before any dividends can be distributed to other shareholders. 2. Convertible preferred stock: This form of preferred stock allows shareholders to convert their preferred shares into a certain number of common shares, providing the opportunity for potential capital appreciation. 3. Redeemable preferred stock: With redeemable preferred stock, the issuing company has the option to repurchase the shares from shareholders at a predetermined price and date. 4. Participating preferred stock: Shareholders holding participating preferred stock are entitled to receive additional dividends beyond their fixed rate if the company achieves exceptional financial performance. 5. Adjustable-rate preferred stock: The dividend rate on adjustable-rate preferred stock can fluctuate based on changes in interest rates or other predetermined factors. Hennepin County's proposal to amend its certificate of incorporation to authorize preferred stock aligns with the county's strategic objective to attract potential investors by providing them with various investment opportunities. This move would allow Hennepin County to raise capital more easily, expand its operations, and potentially enhance shareholder value.

Hennepin County, Minnesota is proposing to amend its certificate of incorporation to include the authorization of preferred stock. A preferred stock is a type of ownership in a corporation that gives shareholders certain privileges and advantages over common stockholders. The proposed amendment to authorize preferred stock in Hennepin County would offer specific benefits to shareholders, such as priority in receiving dividends and assets in case of liquidation. The holders of preferred stock would have a fixed dividend rate, which is often higher than the dividend paid to common stockholders. Additionally, preferred stockholders typically have no voting rights in the company's decision-making process. Different types of preferred stock that Hennepin County may consider incorporating into its certificate of incorporation include: 1. Cumulative preferred stock: This type of preferred stock ensures that any unpaid dividends accumulate and must be paid to shareholders before any dividends can be distributed to other shareholders. 2. Convertible preferred stock: This form of preferred stock allows shareholders to convert their preferred shares into a certain number of common shares, providing the opportunity for potential capital appreciation. 3. Redeemable preferred stock: With redeemable preferred stock, the issuing company has the option to repurchase the shares from shareholders at a predetermined price and date. 4. Participating preferred stock: Shareholders holding participating preferred stock are entitled to receive additional dividends beyond their fixed rate if the company achieves exceptional financial performance. 5. Adjustable-rate preferred stock: The dividend rate on adjustable-rate preferred stock can fluctuate based on changes in interest rates or other predetermined factors. Hennepin County's proposal to amend its certificate of incorporation to authorize preferred stock aligns with the county's strategic objective to attract potential investors by providing them with various investment opportunities. This move would allow Hennepin County to raise capital more easily, expand its operations, and potentially enhance shareholder value.