Authorized Capital Stock Example

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

Description

The document outlines the approval of the authorization of preferred stock for a corporation, specifying that the Board of Directors recommends amending the Articles of Incorporation to permit the issuance of up to 1,000,000 shares of preferred stock at a par value of $1.00. It details key features such as dividend and liquidation preferences, voting rights, conversion options, and anti-dilution provisions. The preferred stockholders are entitled to an 8 percent annual cumulative dividend, accumulate unpaid dividends, and have specific rights during corporate events. The form includes instructions for filling in essential corporate details and emphasizes the necessity of shareholder approval for its execution. This document is particularly useful for attorneys and paralegals by providing a clear legal framework for issuing preferred stock, allowing partners and owners to navigate financial restructuring and capital raising efforts. Legal assistants can utilize it to ensure compliance with state regulations and facilitate the amendment process. Overall, this form serves as a vital tool for effective corporate governance and strategic financial planning.