Amendment Regarding Any Withholding

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

Description

The Amendment regarding any withholding in the context of the proposed changes to the Articles of Incorporation for Pacific Enterprises seeks to enhance the company's ability to issue dividends on both Preferred and Common Stock by removing the limitations imposed by retained earnings. Currently, dividend payments on these stocks are restricted based on the company's retained earnings, which have significantly decreased over the years due to operational losses. The amendment proposes to eliminate these restrictions, allowing dividends to be paid from any legally available funds, thereby affording the company greater flexibility in distributing profits. For the amendment to be approved, it requires a majority vote from the shareholders of both Preferred and Common stocks. The recommendation by the Board of Directors emphasizes the importance of this amendment for future corporate strategies, as it provides a more stable framework for managing shareholder returns while still adhering to legal obligations. This form is particularly beneficial for attorneys, partners, owners, associates, paralegals, and legal assistants who may need to navigate corporate governance matters, assess implications for their clients, and ensure compliance with both internal policies and state regulations. The clear instructions within the document guide users through the voting process and highlight crucial financial considerations involved in the proposed changes.