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Simple English definitions for legal terms

cast-iron-pipe doctrine

Read a random definition: locare

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.

casting vote | castle-guard

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Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
BulbasaurNoLikeCardio
7:51
@texaslawhopefully: best prices and only fast food that doesn't make me sick
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