Simple as writing a rubber check.. Majority Stockholders ( not sure anymore but probably 2 or 3 people currently control voting Pfd A shares) get together over drinks one night and decide it is in best interest of company to increase common A.S. to say...5 Billion to give then a " little room" to sell shates into the market to pay corpoate expenses like...say...dinner and drinks for Pfd A shareholders...they then draw a a 2 or 3 paragraph letter with a few hereas's and therefores... Then vote thier 50% plus majority of Pfd A shares and PRESTO.....
they continue on with the rvening now business is done
And
The common shareholders wake up next morning to find company NOW has 5 Billipn as A.S...... IF...
Some shateholder calls the Transfer Agent ( provided TA not gaged) and learns of the Cpmpany businessdone the night before...