Articles Regarding Legal For Clat

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

Description

The document titled Amendment to Articles of Incorporation outlines proposed changes to Pacific Enterprises' Articles, specifically aimed at enhancing its authority to pay dividends on Preferred and Common Stock. The amendment seeks to eliminate existing retained earnings restrictions that currently limit the payment of dividends to the company's retained earnings. By doing so, it allows dividends to be paid from any legally available funds, thereby increasing flexibility for share distributions. The approval of this amendment requires the majority vote from shareholders of both Common and Preferred Stock. The current limitations, resulting from accumulated losses, have significantly restricted the company's ability to issue dividends. If the amendment is passed, it will provide new avenues for dividend payments, subject to compliance with general corporate financial requirements. This document is valuable for attorneys, partners, owners, associates, paralegals, and legal assistants involved in corporate governance and financial operations, as it details legal protocols and implications tied to corporate dividend distribution.