Close X

Blank Check Preferred Stock

Blank Check Preferred Stock

  • Term

    Main definition

  • Blank Check Preferred Stock

    Preferred stock that has been authorized in the charter of a corporation and is unissued, if the Board of Directors can designate its terms, rights, privileges, preferences, and limitations.

    Before the preferred stock can be issued or sold to investors, the terms, rights and privileges of the preferred stock must be designated. Thus, shares of an authorized blank check preferred stock (if and to the extent authorized by the corporation's charter) may be designated, issued, and sold pursuant to board of directors' action with no requirement or need for further stockholder vote or approval. See also Certificate of Designation.

Contact us Today

The Nick Yocca Law Firm is committed to answering your questions regarding business law, corporate compliance, and other important legal matters in Orange County.

We'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment!