The Kansas Proposed Amendment to the Restated Certificate of Incorporation to Authorize Preferred Stock is a legal provision that allows companies incorporated in Kansas to issue preferred stock. Preferred stock is a type of ownership interest in a corporation that typically offers investors certain advantages over common stockholders. The proposed amendment is aimed at giving corporations more flexibility in their capital structure by granting them the ability to issue preferred stock alongside existing common stock. Preferred stockholders usually receive preferential treatment in terms of dividend payments and liquidation preferences compared to common stockholders. There are different types of preferred stock that can be authorized under this proposed amendment: 1. Cumulative Preferred Stock: This type of preferred stock entitles the holder to accumulate unpaid dividends, which must be paid before any dividends can be distributed to common stockholders. 2. Non-cumulative Preferred Stock: Unlike cumulative preferred stock, non-cumulative preferred stock does not allow the accumulation of unpaid dividends. If a dividend is not paid in a given year, it is forfeited. 3. Convertible Preferred Stock: Convertible preferred stockholders have the option to convert their shares into a specified number of common shares. This feature allows investors to benefit from any potential increase in the company's stock price. 4. Participating Preferred Stock: With participating preferred stock, holders not only receive the fixed dividend but also have the opportunity to participate in any additional dividend distribution to common stockholders, which can lead to higher overall returns. 5. Redeemable Preferred Stock: This type of preferred stock can be redeemed by the corporation at a predetermined price or after a specified period. The redemption allows the corporation to repurchase the shares from the preferred stockholders. 6. Adjustable Rate Preferred Stock: Adjustable rate preferred stock has a variable dividend rate that fluctuates along with changes in market interest rates. This type of preferred stock provides investors with some protection against interest rate risks. 7. Callable Preferred Stock: Callable preferred stock allows the corporation to redeem the shares before their specified maturity date. This feature provides the corporation with the ability to repurchase the stock if desired. The Kansas Proposed Amendment to the Restated Certificate of Incorporation to Authorize Preferred Stock is a significant step in enhancing the capital raising and financial management capabilities of Kansas corporations. By authorizing various types of preferred stock, companies can attract different types of investors and tailor their capital structure to meet specific business needs.