CNS AR24 Digital - Book - Page 33
common stock may adversely affect the market price of our common stock, and any additional shares that we issue will dilute
your percentage ownership in the Company.
Anti-takeover provisions in our charter documents and Delaware law may delay or prevent a change in control
of us, which could decrease the trading price of our common stock.
Our certificate of incorporation and bylaws and Delaware law contain certain anti-takeover provisions that could have
the effect of making it more difficult for a third party to acquire, or of discouraging a third party from attempting to acquire,
control of the Company without negotiating with our board of directors. Such provisions could limit the price that certain
investors might be willing to pay in the future for the Company9s common stock. Certain of these provisions allow the
Company to issue preferred stock with rights more senior to those of our common stock, impose various procedural and other
requirements that could make it more difficult for stockholders to effect certain corporate actions and set forth rules about
how stockholders may present proposals or nominate directors for election at annual meetings.
We believe these provisions protect our stockholders from coercive or other unfair takeover tactics by requiring
potential acquirers to negotiate with our board of directors and by providing our board of directors with more time to assess
acquisition proposals. However, these provisions apply even if an acquisition proposal may be considered beneficial by some
stockholders and could have the effect of delaying or preventing an acquisition. In the event that our board of directors
determines that a potential business combination transaction would be beneficial to the Company and its stockholders, such
stockholders may elect to sell their shares in the Company and the trading price of our common stock could decrease.
Legal and Regulatory Risks
We may be adversely impacted by legal and regulatory changes in the U.S. and internationally.
We operate in a highly regulated industry and are subject to new regulations and revisions to, and evolving
interpretations of, existing regulations in the U.S. and internationally. In recent years, regulators in the U.S. and abroad have
increased oversight of the financial services industry, which may result in and have resulted in regulation that increases the
Company9s cost of conducting its business and maintaining its global compliance standards and may limit or change/has
influenced the Company9s current or prospective business.
U.S. regulatory agencies have proposed and adopted multiple regulations that could impact and have impacted the
mutual fund industry. Potential upcoming regulations and/or rules and amendments could, among other things, restrict the
funds we manage from engaging in certain transactions, impact flows and/or increase expenses as well as compliance costs.
Further, new regulations or interpretations of existing laws have resulted in, and may continue to result in, enhanced
disclosure obligations, including with respect to cybersecurity, insider trading and climate change, sustainability risks or other
environmental, social and governance matters, which could negatively affect us or materially increase our regulatory burden.
At the same time, regulators and legislators have increasingly expressed or pursued opposing views, legislation and
investment expectations with respect to sustainability initiatives, including the enactment or proposal of
