§415-16 Issuance of shares of preferred or special classes in series.
(a) If the articles of incorporation so provide, the shares of any preferred or special class may be divided into and issued in series. If the shares of any such class are to be issued in series, then each series shall be so designated as to distinguish the shares thereof from the shares of all other series and classes. Any or all of the series of any such class and the variations in the relative rights and preferences as between different series may be fixed and determined by the articles of incorporation, but all shares of the same class shall be identical except as to the following relative rights and preferences, as to which there may be variations between different series:(1) The rate of dividend;
(2) Whether shares may be redeemed and, if so, the redemption price and the terms and conditions of redemption;
(3) The amount payable upon shares in event of voluntary and involuntary liquidation;
(4) Sinking fund provisions, if any, for the redemption or purchase of shares;
(5) The terms and conditions, if any, on which shares may be converted; and
(6) Voting rights, if any.
(b) If the articles of incorporation shall expressly vest authority in the board of directors, then, to the extent that the articles of incorporation shall not have established series and fixed and determined the variations in the relative rights and preferences as between series, the board of directors shall have authority to divide any or all of the classes into series and, within the limitations set forth in this section and in the articles of incorporation, fix and determine the relative rights and preferences of the shares of any series established.
(c) In order for the board of directors to establish a series, where authority to do so is contained in the articles of incorporation, the board of directors shall adopt a resolution setting forth the designation of the series and fixing and determining the relative rights and preferences thereof, or so much thereof as shall not be fixed and determined by the articles of incorporation.
(d) Prior to the issue of any shares of a series established by resolution adopted by the board of directors, the corporation shall deliver to the director for filing, a statement setting forth:
(1) The name of the corporation;
(2) A copy of the resolution establishing and designating the series, and fixing and determining the relative rights and preferences thereof;
(3) The date of adoption of the resolution; and
(4) That the resolution was duly adopted by the board of directors.
(e) Upon the filing of the statement by the director, the resolution establishing and designating the series and fixing and determining the relative rights and preferences thereof shall constitute an amendment of the articles of incorporation. [L 1983, c 167, pt of §1; am L 1985, c 270, §4; am L 1987, c 135, §10]