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LSDefine

Simple English definitions for legal terms

dividend-credit rule

Read a random definition: Federal Labor Relations Authority

A quick definition of dividend-credit rule:

The dividend-credit rule is a principle that says when a company has money left over from unpaid dividends on preferred stock, it must use that money to pay dividends on preferred stock before paying dividends on common stock. This is also known as the cast-iron-pipe doctrine.

A more thorough explanation:

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

Let's say a company has both preferred and common stock. The preferred stockholders are entitled to receive a fixed dividend payment each year, while the common stockholders may or may not receive a dividend depending on the company's financial performance. If the company is unable to pay the preferred stock dividend in a given year, the unpaid amount accumulates in a reserve fund. The dividend-credit rule requires that any subsequent dividend payments to preferred stockholders must first be made from this reserve fund before any payments are made to common stockholders.

For example, if a company has $100,000 in its reserve fund and owes $50,000 in unpaid preferred stock dividends, it must use the entire reserve fund to pay the preferred stockholders before any payments can be made to common stockholders. If there is not enough money in the reserve fund to cover the full amount owed to preferred stockholders, the remaining amount will continue to accumulate in the reserve fund until it can be paid in full.

dividend addition | dividend date

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12:01
LOL
Dkk
12:02
Just part of the culture.
BulbasaurNoLikeCardio
12:04
I wish that wearing a mask when sick stuck around as an okay thing like it is in the rest of the world, not all of us have enough sick days to be ditching work.
Dkk
12:04
Unless its like an N95 i dont think it will really do anything
12:04
there's even a mask ban in some places. altho one of my coworkers wears a mask anyway despite customers being rude to her about it
12:05
good morning
12:05
why does umiami ask "Are you applying, or have you applied, to other law schools? If so, please list them."
BulbasaurNoLikeCardio
12:05
One manager came in sick wearing a mask, got roasted and stopped wearing it that day. The entire office has been cycling sickness for two weeks now. It may not be super effective but it may help in slowing the spread during meetings when we have to be so close
12:05
am i the only one who has never gotten my status checker to work on here?
BulbasaurNoLikeCardio
12:06
@ChowieBean: want to see what schools they share an applicant pool with, think it is all data harvesting stuff no a +/- for the applicant
12:06
ok good cuz idk whether i wanna tell them or not
12:06
thanks bulbasaur
12:08
not to be that guy again but berkeley person/applicant id is back and Shiny New Logo
be that guy
EW THE NEW LOGO IS SO UGLY
WTF
12:09
need to send in my berkeley app rawwwww
BulbasaurNoLikeCardio
12:09
@ChowieBean: should be required to tell them, the schools who asked I only told them the schools in their area not all of them.
BulbasaurNoLikeCardio
12:10
*shouldnt be
12:12
@jackfrost11770: if i get a berk A today and they have that logo im withdrawing (/s /s /s /j /j /j)
babycat
12:12
@ChowieBean: me too lol. you applying to public interest scholars program?
12:14
yes def applying public interest
12:16
i was raised like blocks away from umiami
12:16
idk if i wanna go back to florida tho so im applying there as safety/target 💀
12:25
@ChowieBean: doing the same thing
Does anyone think au gonna get back to us today
My app was complete Oct 11
If yes what time
Dkk
12:29
Sure, yes! 11:22:24 PST
ClassyPleasantHeron
12:30
I wonder if Berk was updating their system so that they could watch more video.
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