Item 3.03. Material Modification of Rights of Security Holders.
On June 11, 2020, all outstanding shares of MongoDB, Inc.'s (the "Company") Class B common stock, par value $0.001 per share, automatically converted into the same number of shares of Class A common stock, par value $0.001 per share, pursuant to the terms of the Company’s Amended and Restated Certificate of Incorporation (the "Certificate of Incorporation"). No additional shares of Class B common stock will be issued following such conversion.
The conversion occurred pursuant to Article V, Section 5(a) of the Certificate of Incorporation, which provides that each share of Class B common stock will automatically convert into one fully paid and nonassessable share of Class A common stock at 5:00 p.m. in New York City, New York on the first trading day falling on or after the date on which the outstanding shares of Class B common stock represent less than 10% of the aggregate number of shares of the then outstanding Class A common stock and Class B common stock.
Pursuant to Section 243 of the Delaware General Corporation Law (the "DGCL"), the Company filed a certificate with the Secretary of State of Delaware effecting the retirement and cancellation of the shares of Class B common stock (the “Certificate of Retirement”).
The conversion has the following effects, among others, on the holders of the shares of Class B common stock:
Voting Power. Prior to the conversion, holders of shares of Class B common stock were entitled to cast ten votes per share on any matter submitted to a vote of the Company’s stockholders. As a result of the conversion, all former holders of shares of Class B common stock became holders of shares of Class A common stock, which are entitled to only one vote per share on all matters subject to a stockholder vote with a record date on or after the date of the conversion. In addition, the provisions of the Certificate of Incorporation and Delaware law that entitled the holders of shares of Class A and Class B common stock, in certain circumstances, to separate class voting rights are no longer applicable as a result of the conversion.
Economic Interests. Because holders of shares of Class A common stock are entitled to the same economic interests to which former holders of shares of Class B common stock were entitled before the conversion, including with regard to dividends, liquidation rights and treatment in connection with a change of control or merger transaction, the conversion had no impact on the economic interests of former holders of shares of Class B common stock.
Capitalization. The conversion had no impact on the total number of the Company’s outstanding shares of capital stock, as the shares of Class B common stock converted into an equivalent number of shares of Class A common stock. Pursuant to Section 243 of the DGCL, the filing of the Certificate of Retirement had the effect of amending the Certificate of Incorporation such that, upon the effectiveness of the Certificate of Retirement, the Company’s total number of authorized shares of capital stock has been reduced by the number of previously authorized shares of Class B common stock.
Resale of Common Stock. Shares of Class A common stock into which the Class B common stock converted may be sold in the same manner as the shares of Class B common stock were previously sold. The Company’s affiliates and holders of any shares that constitute restricted securities will continue to be subject to the restrictions specified in Rule 144 promulgated under the Securities Act of 1933, as amended.
Equity Incentive Plans. Upon the conversion, any outstanding options that were denominated in shares of Class B common stock and issued under any of the Company’s equity incentive plans, remained unchanged, except that they now represent the right to receive shares of Class A common stock.
Special Meetings of Stockholders. Special meetings of stockholders may now be called only by the board of directors, the chairperson of the board or the chief executive officer, whereas prior to the conversion, stockholders owning 10% or more of the voting power could also call a special meeting of stockholders.
The description of our Common Stock is not complete and is qualified in its entirety by reference to the Certificate of Retirement and Restated Certificate, which are filed as Exhibits 3.1 and 3.2, respectively, of this Current Report on Form 8-K and incorporated herein by reference.