Legal Question in Business Law in Nevada

Preferred shares
I have just registered corporation in the State of Nevada. I have taken advantage of incorporation service/registered agent. They have filled standard articles of incorporation for my company. The Secretary of the State has registered my company and has authorized issuance of 70000 shares. Now I wish to issue 60000 preferred shares. How I am able to do it? Do I have rights to issue preferred shares if I have filled standard articles of incorporation (official one-page form only)? May be I should make any additional actions in the State of Nevada? May be I need to submit to the Secretary of the State additional documents, for example, �stock designation� form? Alternatively, do I have the rights to issue preferred stocks to initial shareholders without any additional statements under Secretary�s seal?
The second question - do I should notify the Secretary of the State after issuance of common stock shares to initial shareholders/incorporators? Do initial investors shall to buy shares from its own company - if they do not have par value? Alternatively, may be they can receive shares gratuitously if shares have no par value?

Asked on 2/22/09, 9:48 am

James Smith James E. Smith Ltd.

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Re: Preferred shares

You have to amend the Articles to authorize preferred shares.

Answered on 2/22/09, 10:31 am

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