Ask HN: Why would stockholders vote to increase # of issuable common shares?

https://news.ycombinator.com/item?id=3228910
by studentrob • 15 years ago
1 5 15 years ago

Why would stockholders vote to increase the number of authorized shares as in the following?

http://bnymellon.mobular.net/bnymellon/fds/document_1/Proxy%20Statement.pdf ( see: recommendation #3 on page 2)

The only benefit I see here is if I really believe in the company's governance and want to help them from being taken over, assuming there is truly a takeover threat present. Though ownership looks diverse to me?:

http://investors.morningstar.com/ownership/shareholders-major.html?t=FDS

Can anyone help me understand? Surely there is something else to it. Thanks!

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