What happens if a QFI is not able to issue the Preferred Shares by the application deadline due to the need for a shareholder vote, Board authorization, or other constraint?
With respect to issuing preferred stock, some QFIs will be required to solicit and obtain shareholder approval for the authorization of preferred stock. To solicit shareholder approval, a financial institution must comply with the federal securities laws and any applicable state laws. The federal securities laws require certain financial institutions to file a proxy statement when soliciting shareholder approval. In some circumstances, the staff of the Division of Corporation Finance at the SEC may review and comment on proxy statements filed by QFIs seeking shareholder approval for the authorization of preferred stock. The review and comment process, as well as the process for soliciting shareholder approval and holding a shareholder meeting, may extend beyond 30 days due to circumstances outside of the control of the QFI. For this reason, a QFI will be permitted to close as soon as practicable after it completes its proxy solicitation and receives shareholder approval provided that t
Related Questions
- What happens if a QFI is not able to issue the Preferred Shares by the application deadline due to the need for a shareholder vote, Board authorization, or other constraint?
- What happens if I do not return the recredentialing application by the stated deadline?
- Can a corporation issue shares of stock that do not vote?
