Capital Distributions On Winding Up

State:
Multi-State
Control #:
US-CC-4-188C
Format:
Word; 
Rich Text
Instant download

Description

The document outlines a proposed amendment to the Articles of Incorporation of a corporation, allowing for capital distributions during winding up, specifically from capital surplus. It highlights the authority delegated to the Board of Directors to pay dividends and repurchase shares using capital surplus, provided such actions are in compliance with Georgia law. This addition aims to enhance flexibility for managing dividends and share buybacks, particularly in light of past financial deficits. Notably, capital surplus distributions can occur without requiring shareholder approval, which streamlines processes that would otherwise necessitate a majority vote. Moreover, such distributions do not affect earned surplus under Georgia law, maintaining corporate financial health. The document emphasizes the importance of governance and strategic decision-making by the Board regarding the timing and amount of distributions or repurchases. For the target audience which includes attorneys, partners, owners, associates, paralegals, and legal assistants, this form serves as a critical tool for ensuring compliance with corporate governance standards while providing mechanisms to enhance shareholder value amidst challenging financial circumstances.
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  • Preview Approval of amendment to articles of incorporation to permit certain uses of distributions from capital surplus
  • Preview Approval of amendment to articles of incorporation to permit certain uses of distributions from capital surplus
  • Preview Approval of amendment to articles of incorporation to permit certain uses of distributions from capital surplus

How to fill out Approval Of Amendment To Articles Of Incorporation To Permit Certain Uses Of Distributions From Capital Surplus?

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Capital Distributions On Winding Up