Incorporation Amendment Articles With Statistics

• Category: Corporations - Public - Sale or Purchase of Capital Stock
• State: Multi-State
• Control #: US-CC-4-188C
• Format: Word; Rich Text

Description

The incorporation amendment articles provide a framework for a company to utilize capital surplus for dividends and share repurchases, subject to Board of Directors' approval. The proposed amendment aims to enhance financial flexibility under Georgia law, allowing distributions to shareholders even when the corporation has an accumulated deficit of $52,431,000 as of December 31, 1987. Current statistics indicate an unrestricted capital surplus of at least $72,000,000 as of March 31, 1988. The amendment could facilitate strategic initiatives such as enhancing stock value through dividends or potential acquisitions. It’s essential to highlight the legal conditions under which distributions can occur, ensuring that the company does not become insolvent as a result. The Board believes that by allowing purchases of its own shares using capital surplus, the company can navigate market conditions strategically. The approval of this amendment requires a majority vote from shareholders and reflects the Board's strategic vision to safeguard the company's financial interests, particularly in response to market dynamics. This form serves as a vital resource for attorneys, partners, owners, associates, paralegals, and legal assistants involved in corporate governance, ensuring compliance with legal standards while optimizing financial management and shareholder value.