Maryland Proposal for the Stock Split and Increase in the Authorized Number of Shares

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Multi-State
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US-CC-3-212J
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Word; 
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This sample form, a detailed Proposal for the Stock Split and Increase in the Authorized Number of Shares document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats.
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FAQ

Because a corporation's Articles of Incorporation include the number of authorized shares and par value of those shares, a share amendment must be filed with the state in order to change this information.

A stock split is a decision by a company's board of directors to increase the number of shares outstanding by issuing more shares to current shareholders. For example, in a 2-for-1 stock split, a shareholder receives an additional share for each share held.

The number of outstanding shares of Common Stock will be decreased as a result of a Reverse Stock Split, but the number of authorized shares of Common Stock will not be so decreased.

Reasons For Reducing Share Capital Commonly, it is carried out for one of the following purposes: To create distributable reserves ? for use towards payment of a dividend to shareholders or to finance a purchase of the company's own shares, where there are otherwise insufficient distributable profits.

A stock split lowers its stock price but doesn't weaken its value to current shareholders. It increases the number of shares and might entice would-be buyers to make a purchase. The total value of the stock shares remains unchanged because you still own the same value of shares, even if the number of shares increases.

Stock splits If a stock experiences a forward stock split, you'll receive the relevant amount of fractional shares. For example, if you own 2.5 shares of MEOW valued at $10 per share, and MEOW experiences a 2 for 1 () forward stock split, you'll now own 5 shares valued at $5 per share.

(NASDAQ: MULN) (?Mullen? or the ?Company?), an emerging electric vehicle (?EV?) manufacturer, announced today that it will effect a 1-for-9 reverse stock split (?Reverse Stock Split?) of its common stock, par value $0.001 per share (?Common Stock?), that will become effective on August 11, 2023, at a.m., Eastern ...

Splits are often a bullish sign since valuations get so high that the stock may be out of reach for smaller investors trying to stay diversified. Investors who own a stock that splits may not make a lot of money immediately, but they shouldn't sell the stock since the split is likely a positive sign.

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Maryland Proposal for the Stock Split and Increase in the Authorized Number of Shares