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Simple English definitions for legal terms

dividend-credit rule

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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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Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
soapy
8:48
UMN under review! As predicted, decisions are gonna come out early December
Minus those random R decisions from UMN yesterday though right? I wonder what happened there. I don’t think I’ve seen a school start the season out with anything but As on here
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