This seems to be a clause a number of companies are incorporating - here is one filed with another one of my holdings. I have yet to see the Board of this holding, or others, enact a reverse from this clause. Just gives them the authority to do so without a vote, stipulates the range of the split and an expiration. Seems to becoming boiler plate. My opinions as always.
Dear Shareholders:
We are writing to advise you that our Board of Directors and shareholders holding a majority of our outstanding voting capital stock have approved granting the discretionary authority to the Board of Directors to amend the Company's articles of incorporation to effect a reverse stock split (the “Reverse Split Proposal”) of the Company's issued and outstanding common stock (the “Common Stock”) between a range of not less than one-thousand for one (1,000:1) and not more than twenty-five thousand for one (25,000:1), or if at all.
