2022 Code of Alabama
Title 10A - Alabama Business and Nonprofit Entities Code.
Chapter 2A - Alabama Business Corporation Law.
Article 10 - Amendment of Certificate of Incorporation and Bylaws.
Division A - Amendment of Certificate of Incorporation.
Section 10A-2A-10.04 - Voting on Amendments by Voting Groups.

Universal Citation: AL Code § 10A-2A-10.04 (2022)

Section 10A-2A-10.04

Voting on amendments by voting groups.

(a) The holders of the outstanding stock of a class are entitled to vote as a separate voting group (if stockholder voting is otherwise required by this chapter) on a proposed amendment to the certificate of incorporation if the amendment would:

(1) effect an exchange or reclassification of all or part of the stock of the class into stock of another class;

(2) effect an exchange or reclassification, or create the right of exchange, of all or part of the stock of another class into stock of the class;

(3) change the rights, preferences, or limitations of all or part of the stock of the class;

(4) change the stock of all or part of the class into a different number of shares of stock of the same class;

(5) create a new class of stock having rights or preferences with respect to distributions that are prior or superior to the stock of the class;

(6) increase the rights, preferences, or number of authorized shares of stock of any class that, after giving effect to the amendment, have rights or preferences with respect to distributions that are prior or superior to the stock of the class;

(7) limit or deny an existing preemptive right of all or part of the stock of the class; or

(8) cancel or otherwise affect rights to distributions that have accumulated but not yet been authorized on all or part of the stock of the class.

(b) If a proposed amendment would affect a series of a class of stock in one or more of the ways described in subsection (a), the holders of stock of that series are entitled to vote as a separate voting group on the proposed amendment.

(c) If a proposed amendment that entitles the holders of two or more classes or series of stock to vote as separate voting groups under this section would affect those two or more classes or series in the same or a substantially similar way, the holders of stock of all the classes or series so affected shall vote together as a single voting group on the proposed amendment, unless otherwise provided in the certificate of incorporation or added as a condition by the board of directors pursuant to Section 10A-2A-10.03(c).

(d) A class or series of stock is entitled to the voting rights granted by this section even if the certificate of incorporation provides that the stock is nonvoting stock.

(Act 2019-94, §1.)

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