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Simple English definitions for legal terms

cast-iron-pipe doctrine

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A quick definition of cast-iron-pipe doctrine:

The cast-iron-pipe doctrine, also known as the dividend-credit rule, is a principle that states that a company must use its reserve fund, which is made up of unpaid dividends on preferred stock, to pay dividends on preferred stock before paying dividends on common stock. This means that preferred stockholders have priority over common stockholders when it comes to receiving dividend payments from the company.

A more thorough explanation:

The cast-iron-pipe doctrine, also known as the dividend-credit rule, is a principle that states that a company's reserve fund, which is created from unpaid dividends on preferred stock, must be used to pay subsequent dividends on preferred stock before any dividend payments are made on common stock.

For example, if a company has both preferred and common stock, and it has accumulated a reserve fund from unpaid dividends on preferred stock, it must use that fund to pay dividends to preferred stockholders before paying any dividends to common stockholders.

This doctrine is important because it ensures that preferred stockholders receive their dividends before common stockholders, which is fair since preferred stockholders have a higher priority in receiving dividends.

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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