Proposal to amend certificate to reduce par value, increase authorized common stock and reverse stock split with Exhibit
Definition and meaning
The Proposal to amend the certificate to reduce par value, increase authorized common stock and reverse stock split is a legal document utilized by corporations to make significant changes to their stock structure. This proposal facilitates a reduction in the par value of common stock, an increase in the number of authorized shares, and the implementation of a reverse stock split, all aimed at improving the company's financial stability, marketability, and capital structure.
How to complete a form
To successfully complete the proposal form, follow these steps:
- Enter the current par value of the common stock in the designated section.
- Specify the proposed new par value.
- Indicate the current number of authorized common stock shares.
- Fill in the proposed new number of authorized shares.
- Choose the reverse stock split ratio (e.g., one-for-two).
- Ensure all information is accurate and double-check for any errors.
- Obtain necessary approvals from the Board of Directors before submission.
Key components of the form
The proposal form comprises several critical components that require careful attention:
- Current and Proposed Par Value: Details the existing and intended par value for shares.
- Authorized Shares: Indicates the current and proposed increase in authorized shares to be voted on.
- Reverse Stock Split Ratio: Outlines the ratio for the reverse stock split.
- Board Approval Section: Provides space for signatures of Board members approving the proposal.
Legal use and context
This proposal is used in the context of corporate governance and legal compliance, typically requiring approval during a stockholder meeting. It is essential to ensure compliance with both state laws and stock exchange requirements. This document serves to inform shareholders about the implications of the proposed changes, ensuring transparency in the company's decision-making process.
What to expect during notarization or witnessing
When you finalize the proposal documents, you may need notarization or witnessing. During this process:
- A notary will verify the identities of the signers and witness their signatures.
- Ensure all signers are present with valid identification.
- The notary will affix a seal and signature on the document affirming its authenticity.
Common mistakes to avoid when using this form
When preparing the proposal, avoid the following pitfalls:
- Failing to accurately complete the current and proposed values for par stock.
- Missing signatures from Board members or authorized individuals.
- Not reviewing state-specific laws that might affect the proposal.
- Omitting the reverse stock split ratio or other critical details.
Form popularity
FAQ
For a brief period, the financial giant saw its stock trade below $1 per share, and even after many of its peers had fully recovered from the crisis, Citigroup did a 1-for-10 reverse split in 2011 to get its stock price back into double digits.
Visit any financial website that provides a stock splits calendar, such as Yahoo Finance, Nasdaq or MSN Money. Click the text box at the top of the page that allows you to search within the website.
The first stock on this list is Broadcom (AVGO) which is arguably the top dividend stock in the last decade.Despite the massive gain, the company also has an attractive dividend yield of 3.6%. Further, Broadcom's dividend per share has risen from $0.07 in December 2010 to $3.25 per share in June 2020.
Broadcom (AVGO) has 0 splits in our Broadcom stock split history database. Looking at the Broadcom stock split history from start to finish, an original position size of 1000 shares would have turned into 1000 today.
The most recent bank to split its stock was Toronto-Dominion Bank (TSX:TD)(NYSE:TD) in 2014. It currently trades at about $71, lowest among the big banks. This stock likely won't be splitting anytime soon.
Adobe Systems went public on Aug.I say "around" because information on the Abobe website only gives the $0.17 split-adjusted price for its IPO, which is a fraction of what the stock was actually trading at the time. The stock has split at a 2-for-1 ratio six times.
NEW YORK, Oct 29 (Reuters) - Power company Dominion Resources D.N said on Monday it raised its dividend 11 percent and will split its stock. The board increased the quarterly dividend on pre-split shares to 79 cents per share from 71 cents.Separately, the board approved a two-for-one stock split.
But that's usually not the case with reverse stock splits. In factwith a few rare exceptionsreverse stock splits are bad news for investors.The number one reason for a reverse stock split is because the stock exchangeslike the NYSE or Nasdaqset minimum price requirements for shares that trade on their exchanges.