Amend Articles By Special Resolution

• Category: Corporations - Public - Changes Affecting Capital Stock
• State: Multi-State
• Control #: US-CC-3-214E
• Format: Word; Rich Text

Description

The form for amending articles by special resolution allows a corporation to effect significant changes to its Restated Articles of Incorporation, including stock splits and the adjustment of authorized shares. Key features include provisions for a reverse stock split, specifically a 1-for-5 or a 1-for-100 split, which is aimed at consolidating shares to reduce the number of small shareholders, thereby decreasing administrative costs. The form guides users on filling out details such as the effective date of the amendment, the number of shares to be adjusted, and the terms for cash payments in lieu of fractional shares. It is particularly useful for attorneys, partners, owners, and associates involved in corporate governance, as it ensures compliance with legal requirements for making amendments. Paralegals and legal assistants can utilize this form to facilitate shareholder meetings and prepare necessary documentation for approval. This form is relevant in scenarios where a company seeks to streamline its shareholder base or enhance the attractiveness of its stock in the market. It also addresses potential shareholder concerns over holding small amounts of stock, ensuring a smoother transition during the amendment process.