Authorization Stock With Dividends

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

Description

The Authorization Stock With Dividends form serves to document the board of directors' approval for the issuance of preferred stock, specifically up to 1,000,000 shares at a par value of $1.00 each. Key features of this form include dividend preferences that entitle holders to a cumulative dividend rate of eight percent (8%) per annum, and liquidation preferences providing cash payment equal to the initial value plus accumulated dividends upon corporate events such as mergers or liquidations. Additionally, the form outlines terms for conversion of preferred stock to common stock, anti-dilution provisions, and the corporation's options to call or put the preferred stock with specified pricing conditions. This document is vital for attorneys, partners, and corporate owners as it facilitates the necessary legal framework for equity financing and capital management. Paralegals and legal assistants would find this form helpful for managing corporate records and ensuring compliance with statutory requirements when it comes to shareholder approvals and dividend declarations. In brief, this form is instrumental for corporate governance, reflecting strategic financial decisions that could influence the company's growth and investor relations.