Preferred Shares With Dividends

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

Description

The document details the Approval of Authorization of Preferred Stock, specifically a class of shares known as Preferred shares with dividends. The Board of Directors recommends amending the Articles of Incorporation to permit issuing up to 1,000,000 shares at a par value of $1.00 per share. The key features include a cumulative dividend of eight percent per annum, liquidation preference that ensures preferred shareholders receive their dividends before common shareholders, and stipulations surrounding voting rights and conversion to common stock. Filling instructions highlight that approval from common stockholders is necessary to authorize this amendment, ensuring compliance with legal and corporate governance standards. The form is particularly useful for attorneys, partners, and legal assistants as it outlines clear rights associated with preferred stock that can protect investors' interests. Additionally, partners and owners benefit from understanding the repercussions of corporate events on shareholder equity. Legal associates and paralegals can utilize this form to prepare documentation for shareholder meetings and ensure that all aspects of preferred stock issuance follow required legal protocols, making it a critical resource for corporate legal matters.