Georgia Proposed amendment to Article 4 of certificate of incorporation to authorize issuance of preferred stock with copy of amendment

• Category: Corporations - Public - Changes Affecting Capital Stock
• State: Multi-State
• Control #: US-CC-3-123
• Format: Word; Rich Text

Description

This sample form, a detailed Proposed Amendment to Article 4 of Certificate of Incorporation to Authorize Issuance of Preferred Stock w/Copy of Amendment document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats.

The Proposed Amendment to Article 4 of the Certificate of Incorporation in Georgia allows the company to authorize the issuance of preferred stock. This amendment is crucial as it grants the company flexibility in raising capital and attracting potential investors by offering a new class of stock. Preferred stock is a type of stock that gives shareholders certain privileges over common stockholders. These privileges may include priority in receiving dividends and liquidation preferences if the company is sold or goes bankrupt. By authorizing the issuance of preferred stock, a company can offer investors a different investment opportunity with unique benefits compared to common stock. There are various types of preferred stock that a company can issue, including: 1. Cumulative Preferred Stock: With this type of stock, if the company is unable to pay dividends in a specific period, the unpaid dividends accumulate and must be paid before any dividends can be paid to common stockholders. 2. Non-Cumulative Preferred Stock: Unlike cumulative preferred stock, unpaid dividends do not accumulate. If the company is unable to pay dividends in a specific period, they are lost and do not need to be paid in the future. 3. Convertible Preferred Stock: This type of stock provides the option for preferred stockholders to convert their shares into common stock at a predetermined conversion ratio. By having this option, preferred stockholders can benefit from potential increases in the company's value by converting their shares into common stock. 4. Participating Preferred Stock: With participating preferred stock, shareholders receive preferential treatment in receiving dividends but also have the opportunity to participate in the distribution of additional dividends with common stockholders. 5. Redeemable Preferred Stock: This type of stock can be redeemed or repurchased by the company at a specific price or date in the future. This provides the company with flexibility in managing its capital structure and allows for potential changes in ownership. The Proposed Amendment to Article 4 of the Certificate of Incorporation aims to authorize the issuance of preferred stock and potentially one or more of these types of preferred stock. By providing investors with different classes of stock, the company can increase its financial options and attract a wider range of investors who may be interested in the specific benefits offered by preferred stock. The full text of the amendment can be found in the provided copy of the amendment.