Authorization Stock With Aws

• Category: Corporations - Public - Changes Affecting Capital Stock
• State: Multi-State
• Control #: US-CC-3-173E
• Format: Word; Rich Text

Description

The Approval of Authorization of Preferred Stock form allows a Corporation to issue up to 1,000,000 shares of preferred stock with a par value of $1.00 each. Key features include a cumulative dividend preference of eight percent (8%), liquidation rights ensuring preferred stockholders are compensated before common stockholders during corporate events, and a conversion option allowing investors to convert preferred shares into common stock at a rate of ten shares of common stock for each preferred share. The form outlines voting rights limitations, requiring certain corporate actions to gain majority approval from preferred stockholders. It also describes anti-dilution provisions and the Corporation's options to call or stockholders' options to sell (put) their shares. This form is valuable for attorneys, partners, owners, associates, paralegals, and legal assistants involved in corporate governance and fundraising, enabling them to understand and implement necessary amendments to incorporate preferred stock. Additionally, the form aids in strategic financial planning, as it provides a mechanism for managing debt and potentially attracting investment by issuing preferred stock without further shareholder approval, thus improving corporate flexibility and financial positioning.