Form with which a corporation may alter the amount of outstanding shares issued by the corporation.
The South Carolina Change Amount of Authorized Shares — Resolution For— - Corporate Resolutions is a legally binding document that is used by corporations in South Carolina to alter the number of authorized shares in their company. This form is an essential part of corporate governance, as it allows shareholders to approve changes to the capital structure of the corporation. This form mainly consists of the following sections: 1. Heading: The form typically includes the name of the corporation, the date the resolution is being adopted, and the specific resolution number. 2. Shareholders' Meeting: This section requires the corporation to specify whether the resolution was adopted at a regular or special meeting of the shareholders. 3. Current Authorized Shares: Here, the corporation must provide details about the current number of authorized shares, including the par value or the stated value per share, if applicable. This information helps provide context for the changes being proposed. 4. Proposed Change: This section requires a clear and concise statement of the proposed change to the authorized share structure. Shareholders need to review this information carefully before casting their vote. 5. Approval: The form provides space for the shareholders to indicate their approval or disapproval of the proposed change. Shareholders' votes are typically recorded as the number of shares in favor, against, or abstaining. 6. Effective Date: The form includes a designated space for the effective date of the approved resolution. This date will determine when the changes to the authorized share structure will take effect. It is worth noting that there may be different types of South Carolina Change Amount of Authorized Shares — Resolution Form— - Corporate Resolutions based on the specific circumstances or nature of the change. Some variations may include: 1. Increase in Authorized Shares: This type of resolution is used when a corporation intends to raise the total number of authorized shares available for issuance. It may be necessary when the company experiences growth or needs to accommodate additional shareholders. 2. Decrease in Authorized Shares: This resolution is utilized when a corporation wishes to reduce the number of authorized shares, often as a result of a restructuring, consolidation, or buyback program. 3. Amendment of Par Value or Stated Value: In some cases, corporations may need to amend the par value or stated value of their shares, which affects the shareholders' rights and the financial structure of the company. A separate resolution form may be used for this specific change. In summary, the South Carolina Change Amount of Authorized Shares — Resolution For— - Corporate Resolutions is a crucial tool for corporations in South Carolina to facilitate changes to their authorized share structure. The form ensures transparency, accountability, and legal compliance by documenting and recording shareholders' approval of these changes.
