New York Community Bancorp , Inc. (NYSE:NYCB) has announced its intention to seek approval from its shareholders for a series of amendments to its corporate charter, including a reverse stock split and an increase in authorized shares, according to a recent SEC filing.
The proposed amendments include a 1-for-3 reverse stock split of the company's common stock, which aims to enhance the stock's appeal to a wider range of investors by increasing its bid price. Additionally, NYCB plans to increase the number of authorized shares of common stock to a minimum of 1,700,000,000, or 566,670,000 if the reverse stock split is approved.
The bank also seeks to exempt certain investors and their affiliates from a provision in its charter that prevents any person who owns more than 10% of the outstanding common stock from voting shares that exceed this threshold.
For the reverse stock split and the increase in authorized shares to be approved, NYCB will require the affirmative vote of a majority of the common stock votes cast at a duly held stockholders' meeting. The exemption amendment will need the affirmative vote of a majority of the outstanding shares entitled to vote.
Additionally, the issuance of new shares amounting to 20% or more of the company's total voting power will require approval from a majority of the votes cast by common stockholders at a meeting with a quorum present.
These proposals are in accordance with the rules of the New York Stock Exchange and are part of NYCB's strategic efforts to adjust its capital structure and governance in a way that can potentially attract more investment. The bank has not yet announced the date for the stockholders' meeting at which these proposals will be voted on.
This announcement is based on a press release statement made by New York Community Bancorp, Inc. in a recent SEC Form 8-K filing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.