After incorporating your Delaware company and during the life cycle of your business, one of the things that might potentially come up is that you might want to either increase the authorized stock in your business due to fundraising activities or on rare occasions, you might also want to have it decreased. Delaware stock amendment can be a breeze provided that it is properly done.
Delaware stock amendment
Delaware is quite flexible with this amendments and this can be done in as little as 1 hour depending on whether you decide to pay expedited fees or not. Delaware is currently experiencing long wait times and amendments can take up to several weeks thus we will typically recommend payment of same day or 24hours expedited fees to have the amendment processed on time.
The amendment is submitted to the Delaware department of corporations with a cover letter and a certificate of amendment to be filed in accordance with the General Corporation Law of the State of Delaware. Article IV on a Delaware Certificate of Incorporation states out the authorized stock of the company and this is the article to be amended.
Certificate of Amendment
This certificate is a template document by the Delaware department of corporation in form of a resolution that upon submission to the department, evidences an intent to amend the articles of a Delaware company. Upon acceptance, an acknowledged certificate of amendment is issued with a date and time stamp.
It should be noted that Delaware does not accept the application for amendment via e-mail or fax. Additionally documents are also returned by mail thus, a prepaid shipping label has to be included in the application for a Delaware stock amendment.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.