Harris Texas Proposed amendment to the restated certificate of incorporation to authorize preferred stock

• Category: Corporations - Public - Changes Affecting Capital Stock
• State: Multi-State
• County: Harris
• Control #: US-CC-3-183M
• Format: Word; Rich Text

Description

This sample form, a detailed Proposed Amendment to the Restated Certificate of Incorporation to Authorize 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 Proposed amendment to the restated certificate of incorporation aims to authorize preferred stock, providing the company with a versatile financial tool. Preferred stock refers to a type of ownership in a corporation that typically ensures certain privileges and preferential treatment for its holders, especially when compared to common stock shareholders. This amendment allows Harris Texas to issue preferred stock to raise capital, enhance investor relations, and potentially incentivize investors. The authorized preferred stock can be categorized into various types, each serving unique purposes and providing distinct rights to the shareholders. These different types may include: 1. Cumulative preferred stock: This type guarantees that if the company fails to pay dividends in a specific year, the unpaid amount will accumulate, and holders will be entitled to receive these unpaid dividends in subsequent years before the common shareholders can receive any dividends. 2. Non-cumulative preferred stock: Unlike cumulative preferred stock, this type does not accumulate unpaid dividends. If the company fails to pay dividends in a specific year, the preferred shareholders will have no claim on those unpaid dividends in the future. 3. Convertible preferred stock: This variant offers the option to convert preferred stock into a predetermined number of common shares, enabling preferred shareholders to benefit from potential appreciation in the value of the company's common stock. 4. Redeemable preferred stock: With this type, the company has the right to redeem the preferred stock at a predetermined price and within a specific timeframe. The redemption price could be at par value or a premium, providing the corporation with more flexibility in managing its capital structure. 5. Participating preferred stock: Participating preferred stockholders enjoy both a fixed dividend and a share in additional profits, typically on an equal basis with common shareholders. This allows preferred shareholders to receive extra dividends when the company performs exceptionally well financially. 6. Preferred stock with voting rights: In addition to the typical rights associated with preferred stock, this type grants voting privileges to preferred shareholders, giving them a say in certain corporate decisions. The Harris Texas Proposed amendment to the restated certificate of incorporation to authorize preferred stock reflects the company's forward-thinking approach in fundraising, enhancing its financial options, and attracting potential investors. By offering distinct types of preferred stock, Harris Texas can tailor its approach to the specific needs of its shareholders, creating a balanced and flexible capital structure.

The Harris Texas Proposed amendment to the restated certificate of incorporation aims to authorize preferred stock, providing the company with a versatile financial tool. Preferred stock refers to a type of ownership in a corporation that typically ensures certain privileges and preferential treatment for its holders, especially when compared to common stock shareholders. This amendment allows Harris Texas to issue preferred stock to raise capital, enhance investor relations, and potentially incentivize investors. The authorized preferred stock can be categorized into various types, each serving unique purposes and providing distinct rights to the shareholders. These different types may include: 1. Cumulative preferred stock: This type guarantees that if the company fails to pay dividends in a specific year, the unpaid amount will accumulate, and holders will be entitled to receive these unpaid dividends in subsequent years before the common shareholders can receive any dividends. 2. Non-cumulative preferred stock: Unlike cumulative preferred stock, this type does not accumulate unpaid dividends. If the company fails to pay dividends in a specific year, the preferred shareholders will have no claim on those unpaid dividends in the future. 3. Convertible preferred stock: This variant offers the option to convert preferred stock into a predetermined number of common shares, enabling preferred shareholders to benefit from potential appreciation in the value of the company's common stock. 4. Redeemable preferred stock: With this type, the company has the right to redeem the preferred stock at a predetermined price and within a specific timeframe. The redemption price could be at par value or a premium, providing the corporation with more flexibility in managing its capital structure. 5. Participating preferred stock: Participating preferred stockholders enjoy both a fixed dividend and a share in additional profits, typically on an equal basis with common shareholders. This allows preferred shareholders to receive extra dividends when the company performs exceptionally well financially. 6. Preferred stock with voting rights: In addition to the typical rights associated with preferred stock, this type grants voting privileges to preferred shareholders, giving them a say in certain corporate decisions. The Harris Texas Proposed amendment to the restated certificate of incorporation to authorize preferred stock reflects the company's forward-thinking approach in fundraising, enhancing its financial options, and attracting potential investors. By offering distinct types of preferred stock, Harris Texas can tailor its approach to the specific needs of its shareholders, creating a balanced and flexible capital structure.