Common Stock Par Value Of

• Category: Corporations - Public - Changes Affecting Capital Stock
• State: Multi-State
• Control #: US-CC-3-215A
• Format: Word; Rich Text

Description

The document addresses a proposal to amend the Articles of Incorporation regarding the Common Stock par value, changing it from $5.00 to $1.00 per share. This modification aims to enhance the corporation's flexibility in managing capital distributions, such as stock splits and dividends, while ensuring compliance with state corporation laws. The Board of Directors has already approved this change, requesting stockholders to ratify it. Par value serves as a nominal value assigned to shares, typically representing initial contributions to the corporation. While historically significant, its current relevance is limited; it influences accounting and legal procedures rather than market valuation. This proposed change aims to prevent restrictions that high par value might impose on stock dividends and splits, thereby benefiting stockholders. The change will not alter the Corporation’s Total Shareholder's Equity or the market value of the shares. Target audiences, including attorneys, partners, owners, associates, paralegals, and legal assistants, will find this form essential for understanding legal implications, preparing for shareholder meetings, and ensuring compliance with procedural requirements during corporate governance actions.