Capital Structure

12 Months Ended

Dec. 31, 2014

Capital Structure

(21) Capital Structure

The Company is authorized to issue three types of capital stock, as outlined in the table below:

	Authorized,					Voluntary or
	issued, and		Par value,			involuntary
	outstanding		per share		Redemption rights	liquidation rights
Common stock		40,000,000	$	1.00	None	None
		20,000,001
		20,000,001
Preferred stock:
Class A		200,000,000	$	1.00	Designated by Board	Designated by Board
		18,903,484			for each series issued	for each series issued
		18,903,484
Class A, Series A		8,909,195		1.00	$35.02 per share plus	$35.02 per share plus
		8,909,195			an amount to yield a	an amount to yield a
		8,909,195			compounded annual	compounded annual
					return of 6%, after	return of 6%, after
					actual dividends paid	actual dividends paid
Class A, Series B		10,000,000		1.00	$35.02 per share plus	$35.02 per share plus
		9,994,289			an amount to yield a	an amount to yield a
		9,994,289			compounded annual	compounded annual
					return of 6%, after	return of 6%, after
					actual dividends paid	actual dividends paid
Class B		400,000,000		1.00	Designated by Board	Designated by Board
					for each series issued	for each series issued

Holders of Class A preferred stock and of common stock are entitled to one vote per share with respect to all matters presented to or subject to the vote of shareholders. Holders of Class B preferred stock have no voting rights. All issued and outstanding shares are owned by AZOA. See note 1 for further discussion.

Each share of Class A preferred stock is convertible into one share of the Company’s common stock. The Company may redeem any or all of the Class A preferred stock at any time. Dividends will be paid to each class of stock only when declared by the BOD. In the event a dividend is declared, dividends must be paid to holders of Class A preferred stock, Class B preferred stock, and common stock, each in that order.

As discussed in notes 2 and 17, the Company carried out various capital transactions with related parties during 2014, 2013, and 2012.