14A:7-1. Authorized shares

244 words·~1 min read·/nj/title-14a/chapter-7/14a-7-1

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Each corporation shall have power to create and issue the number of shares stated in its certificate of incorporation. Such shares may consist of one class or may be divided into two or more classes and any class may be divided into one or more series. Each class and series may have such designation and such relative voting, dividend, liquidation and other rights, preferences, and limitations as shall be stated in the certificate of incorporation, except that all shares of the same class shall be either without par value or shall have the same par value. Each class and series shall be designated so as to distinguish its shares from those of every other class and series.

(2)In particular, and without limitation upon the general power granted by subsection 14A:7-1(1), a corporation, when so authorized in its certificate of incorporation, may issue classes of shares and series of shares of any class

(a)entitling the holders thereof to cumulative, non-cumulative or partially cumulative dividends;

(b)entitling the holders thereof to receive dividends payable on a parity with or in preference to the dividends payable on any other class or series;

(c)entitling the holders thereof to preferential rights upon the liquidation of, or upon any distribution of the assets of, the corporation;

(d)convertible as provided in section 14A:7-9;

(e)redeemable as provided in section 14A:7-6;

(f)lacking voting rights or having limited voting rights or enjoying special or multiple voting rights.