Blank Check Preferred

Blank check preferred stock refers to authorized but unissued preferred stock; the terms of which have not been set out in the issuer’s articles of incorporation or certificate of incorporation but may be determined by the issuer’s board of directors. An issuer’s articles or certificate of incorporation would authorize a specified maximum number of shares of preferred stock that the issuer may issue from time to time and grant the issuer’s board of directors the authority to set the terms of any series of preferred stock, including, but not limited to, the voting rights, the preferences, and any rights associated with the securities and these would be set out in a certificate of designations or in articles supplementary.