Amendment Regarding Any Forswore

• Category: Corporations - Public - Changes Affecting Capital Stock
• State: Multi-State
• Control #: US-CC-3-369
• Format: Word; Rich Text

Description

The Amendment To Articles Of Incorporation proposes significant changes to Pacific Enterprises' ability to distribute dividends on its Preferred and Common Stock by removing existing retained earnings restrictions. This amendment aims to enhance the corporation's flexibility in paying dividends, thereby permitting distributions from any legally available funds. Approval requires majority consent from both Common and Preferred stockholders. Currently, dividends are limited by retained earnings, which have declined from approximately $770 million to $146 million due to past losses. The amendment would allow distributions based solely on general statutory constraints and financial conditions, creating a more favorable environment for shareholders. The Board of Directors recommends approval, emphasizing that while common shareholders may benefit, the amendment also addresses preferred shareholders' interests. Target audiences, such as attorneys, partners, owners, associates, paralegals, and legal assistants, can use this form to navigate corporate governance issues and ensure compliance with legal standards when discussing or drafting modifications to corporate by-laws. Clear instructions should be followed during the filing and voting processes to ensure the successful implementation of the proposed changes.