California Corporations Code

§ 402.5

CORP § 402.5 Effective Jan 1, 2015Div. 1 · Title 1 · Ch. 4

Statute text

The rights, preferences, privileges, and restrictions granted to or imposed upon a class or series of preferred shares (Section 176), the designation of which includes either the word “preferred” or the word “preference,” may:

(a)Notwithstanding paragraph (9) of subdivision (a) of Section 204, include a provision requiring a vote of a specified percentage or proportion of the outstanding shares of the class or series that is less than a majority of the class or series to approve any corporate action, except where the vote of a majority or greater proportion of the class or series is required by this division, regardless of restrictions or limitations on the voting rights thereof.

(b)Notwithstanding paragraph (5) of subdivision (a) of Section 204, provide that in addition to the requirement of subdivision (a) of Section 1900 the corporation may voluntarily wind up and dissolve only upon the vote of a specified percentage (which shall not exceed 6623 percent) of such class or series.

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Legislative history

Amended by Stats. 2014, Ch. 71, Sec. 22. (SB 1304) Effective January 1, 2015.