Stock Amendments in a Delaware Corporation

Company stocks represent ownership in a corporation, with each providing different rights and privileges to shareholders. However, over time, a company can grow and evolve, demanding a different number of authorized shares of stock. In these cases, a corporation can make a stock amendment to change or alter its authorized stock structure.

What is a Stock Amendment?

Do you need to increase or decrease the number of shares of stock your corporation has to offer? A stock amendment is an economical way to adjust the share structure of your company. As your company evolves, you may want to increase or decrease the number of Authorized shares in your company to keep up with the upsizing or downsizing of your company over time. Alternatively, you may want to add an all new class of stock to better accommodate your stockholders.

Reasons to Make a Stock Amendment

There are several reasons to make a change or alteration to your company’s authorized stock structure, which can involve actions such as:

• Change the number of authorized shares
• Change or add classes of stock (like common stock and preferred stock)
• Adjust the rights associated with particular shares

Do shareholders vote on stock amendments?

A stock amendment typically requires approval by the corporations Board of Directors and shareholders. Once approved a required filing is made with the Divisions of Corporations. Stock Amendments in a Delaware corporation are extremely flexible and easy to amend. All you need to do is hold a meeting with your stockholders, once you agree on a new number of authorized shares, call Harvard Business Services, Inc. to submit the Certificate of Amendment with the Division of Corporations.

We can help. Simply call 800-345-2677, Ext. 6911 or email us. Please be advised we will need to know the total number of shares authorized along with the new par value.