Articles Any Legally Without A License

• 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 a notable change for Pacific Enterprises, aiming to eliminate restrictions on dividend payments for both Preferred and Common Stock. The amendment seeks shareholder approval to allow dividends on Preferred Stock and distributions on Common Stock, which is currently limited by retained earnings. This change is critical given the sharp decline in retained earnings from $770 million in 1988 to $146 million by 1991, primarily due to losses in non-utility operations. The proposed amendment would enable the payment of dividends based on any legally available funds instead of just retained earnings, thus providing a more flexible approach for future distributions. The approval process requires a majority vote from both classes of shareholders. This form is particularly useful for attorneys, partners, owners, associates, paralegals, and legal assistants who manage corporate governance and transactions, as it reflects significant shareholder rights and corporate financial strategy. Proper understanding and navigation of this amendment could help ensure compliance with corporate laws while securing shareholders' interests and planning strategic financial maneuvers.