Rights, Preferences, Privileges and Restrictions of Preferred Stock Clause Samples
The 'Rights, Preferences, Privileges and Restrictions of Preferred Stock' clause defines the specific entitlements and limitations associated with preferred shares in a company. It typically outlines aspects such as dividend rights, liquidation preferences, voting power, conversion rights, and any restrictions on transfer or redemption of the preferred stock. For example, it may specify that preferred shareholders receive dividends before common shareholders or have the right to convert their shares into common stock under certain conditions. This clause is essential for clearly delineating the advantages and limitations of holding preferred stock, thereby protecting investor interests and preventing disputes over shareholder rights.
POPULAR SAMPLE Copied 3 times
Rights, Preferences, Privileges and Restrictions of Preferred Stock. The rights, preferences, privileges and restrictions granted to and imposed on the Series A Preferred, the Series B Preferred, the Series C Preferred, the Series C-1 Preferred and the Series D Preferred (collectively, the “Preferred”) are as set forth below in this Article IV(B).
Rights, Preferences, Privileges and Restrictions of Preferred Stock. The preferred stock may be issued from time to time in one or more series consisting of such number of shares (which number may be increased or decreased, but not below the number of shares thereof then outstanding) and with such distinctive serial designations as shall be stated and expressed in the resolution or resolutions creating such series adopted by the Board of Directors; and such series (a) may have such voting powers, full or limited, or may be without voting powers; (b) may be redeemable for cash, property or rights, including securities of any other corporation, at the option of either the holder or the Corporation or upon the happening of a specified event, at such time or times, such price or prices, or such rate or rates, and with such adjustments; (c) may be entitled to receive dividends (which may be cumulative or non-cumulative) at such rate or rates, on such conditions, and at such times, and payable in preference and priority to the common stock and on a par with, or in such relation to, the dividends payable on any other class or classes or series of stock; (d) may have such rights upon the dissolution of, or upon any distribution of the assets of, the Corporation, including the right to receive such distribution in preference to the common stock, and on a par with, or in such relation to, the distribution to any other class or classes or series of stock; (e) may be made convertible into, or exchangeable for, at the option of either the holder or the Corporation or upon the happening of a specified event, shares or any other class or classes or any other series or the same or any other class or classes of stock of the Corporation, at such price or prices or at such rate or rates of exchange, and with such adjustments; and (f) may have such other powers, preferences and relative, participating, optional or special rights and qualifications, limitations or restrictions thereof, all as shall hereafter be stated and expressed in the resolution or resolutions providing for the creation of each such series of preferred stock from time to time adopted by the Board of Directors pursuant to authority so to do which is hereby expressly vested in the Board of Directors. Without limiting the generality of the foregoing, the following series of preferred stock shall have the rights, preferences, privileges and restrictions set forth below: