North Dakota Proposal to Amend Certificate of Incorporation to Effectuate a One for Ten Reverse Stock Split In North Dakota, a proposal to amend a company's certificate of incorporation to effectuate a one for ten reverse stock splits has been gaining attention in recent times. This initiative aims to consolidate a company's outstanding shares by merging ten existing shares into a single share. This process can have various types, including: 1. Statutory Procedure: This method involves following the guidelines laid out by the North Dakota state statutes for effectuating a reverse stock split in a company's certificate of incorporation. It ensures compliance with all legal requirements. 2. Shareholder Approval: One type of North Dakota proposal is a reverse stock split that requires the approval of the company's shareholders. This usually occurs during a special meeting where shareholders can vote on the proposed amendment to the certificate of incorporation. 3. Board of Directors Decision: In some cases, the decision to effectuate a reverse stock split may only require approval from the company's board of directors. This type of proposal is often implemented when the company's management believes that a reverse stock split would benefit the company and its shareholders. 4. Mandatory Reverse Stock Split: In rare situations, North Dakota may propose a mandatory reverse stock split that affects all companies within the state. This type of proposal is typically driven by specific economic or legal circumstances and aims to stabilize the market or address issues concerning stock prices. The purpose of these North Dakota proposals is to rationalize a company's capital structure, increase its stock price, and improve its marketability. By consolidating shares, a reverse stock split may attract new investors, meet listing requirements on stock exchanges, and enhance the company's overall financial health. When drafting these proposals, keywords such as "North Dakota," "amendment to certificate of incorporation," "one for ten reverse stock splits," "shareholder approval," "board of directors," and "statutory procedure" are crucial to ensure that all relevant information is conveyed effectively. It is essential to provide a detailed description to enable stakeholders to make informed decisions regarding the proposal's implementation and potential impact on the company and its shareholders.