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Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?

To: Scotsman who wrote (3338)	4/8/1999 8:34:00 AM
From: David Lawrence	Respond to of 6846

I believe you are correct, Engineer Stott. If they pay it as a stock dividend, shareholder approval is not necessary. The reason most companies do additional share authorizations is to do a split and piggyback the creation of "on-the-shelf" shares to be funneled to their employees benefit plans and executive incentive plans. A vote for additional shares is often accompanied my one or more votes to modify those plans, increasing the number of shares made available to them. Also, I am pretty sure that stock dividends are not "paid" on treasury shares anymore than cash dividends are. Thus, while a 100% stock dividend may double the number the number of outstanding shares, it does not increase the number of treasury shares, which are carried at par value anyway.