Philadelphia Pennsylvania Amendment to the articles of incorporation to eliminate par value

• Category: Corporations - Public - Changes Affecting Capital Stock
• State: Multi-State
• County: Philadelphia
• Control #: US-CC-3-243
• Format: Word; Rich Text

Description

This sample form, a detailed Amendment to the Articles of Incorporation to Eliminate Par Value 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 Philadelphia Pennsylvania Amendment to the articles of incorporation to eliminate par value is a legal procedure that allows a corporation to remove or change the previously stated monetary value assigned to each existing share of its stock. Par value is the nominal value assigned to shares at the time of incorporation and has historically provided some legal protections to shareholders. By eliminating par value, corporations gain more flexibility in setting share prices and issuing new stock, making it easier to attract investors and raise capital. This amendment ensures that the corporation has the ability to issue shares at market value or at a value agreed upon by the board of directors. There are two main types of Philadelphia Pennsylvania Amendments to the articles of incorporation to eliminate par value: 1. Complete elimination of par value: This amendment entirely removes the par value from the articles of incorporation, liberating the corporation from any fixed nominal value per share. This allows the corporation to determine the value of its shares based on prevailing market conditions or the board's assessment. 2. Modification of par value: In this type of amendment, the par value is modified to a very low or nominal amount, such as $0.001 per share. This modification allows the corporation to retain some benefits associated with par value-based shares, such as the ability to assess minimum stock prices for certain transactions or to meet specific legal requirements or regulations. Keywords: Philadelphia Pennsylvania, amendment, articles of incorporation, eliminate, par value, corporation, shares, stock, flexibility, investors, capital, market value, board of directors, complete elimination, modification, nominal amount, minimum stock prices, legal requirements, regulations.

The Philadelphia Pennsylvania Amendment to the articles of incorporation to eliminate par value is a legal procedure that allows a corporation to remove or change the previously stated monetary value assigned to each existing share of its stock. Par value is the nominal value assigned to shares at the time of incorporation and has historically provided some legal protections to shareholders. By eliminating par value, corporations gain more flexibility in setting share prices and issuing new stock, making it easier to attract investors and raise capital. This amendment ensures that the corporation has the ability to issue shares at market value or at a value agreed upon by the board of directors. There are two main types of Philadelphia Pennsylvania Amendments to the articles of incorporation to eliminate par value: 1. Complete elimination of par value: This amendment entirely removes the par value from the articles of incorporation, liberating the corporation from any fixed nominal value per share. This allows the corporation to determine the value of its shares based on prevailing market conditions or the board's assessment. 2. Modification of par value: In this type of amendment, the par value is modified to a very low or nominal amount, such as $0.001 per share. This modification allows the corporation to retain some benefits associated with par value-based shares, such as the ability to assess minimum stock prices for certain transactions or to meet specific legal requirements or regulations. Keywords: Philadelphia Pennsylvania, amendment, articles of incorporation, eliminate, par value, corporation, shares, stock, flexibility, investors, capital, market value, board of directors, complete elimination, modification, nominal amount, minimum stock prices, legal requirements, regulations.