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Certificate of Designation

Certificate of Designation

  • Term

    Main definition

  • Certificate of Designation

    A certificate of designation (in some states called a "certificate of determination") is a certificate filed by a corporation with the appropriate state agency (usually the Secretary of State) of the state of incorporation that becomes a part of the corporation's charter.

    A certificate of designation is signed by a corporate officer attesting to the board of directors' designation of the terms, rights, preferences, and limitations of a new series of preferred stock.  Certificates of designation are usually associated with blank check preferred stock. Once filed, the Certificate of Designation becomes a part of the corporation's charter (and the authorizing instrument of the security in question).

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