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After incorporating your Delaware corporation and during the life of your business, one of the things that could possibly happen is that you might want to increase the allowable stock in your business due to fundraising activities or, in on rare occasions, you might also want to decrease it. Changing Delaware stocks can be a piece of cake provided it is done correctly.
Changing Delaware Stocks
Delaware is quite flexible with these changes and it can be done in as little as an hour depending on whether you decide to pay expedited fees or not. Delaware is currently experiencing long wait times and changes can take up to several weeks. So we usually recommend same day or 24 hour expedited fee payment for the change to be processed in time.
The amendment is submitted to the Delaware Department of Corporations with a cover letter and certificate of amendment to be filed pursuant to the general corporate law of the State of Delaware. Item IV on a Delaware Certificate of Incorporation indicates the permitted stock of the company and this is the item to change.
This certificate is a model document of the Delaware Department of the corporation in the form of a resolution which, when submitted to the department, evidences an intention to amend the articles of a Delaware corporation. Upon acceptance, a change certificate with acknowledgment of receipt is issued with a time stamp.
It should be noted that Delaware does not accept change request by email or fax. In addition, the documents are also returned by mail. Thus, a prepaid shipping label must be included in the Delaware inventory change request.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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