Ability to Pay Dividends Clause Samples
The 'Ability to Pay Dividends' clause defines the conditions under which a company is permitted to distribute profits to its shareholders in the form of dividends. Typically, this clause outlines financial thresholds or requirements—such as maintaining a minimum net asset value or ensuring that dividend payments do not breach loan covenants—that must be met before any dividends can be declared. Its core practical function is to protect the financial stability of the company and the interests of creditors by preventing dividend payments that could jeopardize the company’s solvency or violate contractual obligations.
Ability to Pay Dividends. The Company has all permits, licenses, franchises, authorizations, orders and approvals of, and has made all filings, applications and registrations with, Governmental Entities and third parties that are required in order to permit the Company to declare and pay dividends on the Preferred Shares on the Dividend Payment Dates set forth in the Certificate of Designation.
Ability to Pay Dividends. Except as set forth on Section 3.28 of the Company Disclosure Letter, the Company is not party to any Contract, and is not subject to any provision in the Charter or resolutions of the board of directors of the Company that, in each case, by its terms prohibits or prevents the Company from paying dividends in form and the amounts contemplated by the Certificate of Designations.
Ability to Pay Dividends. Except with respect to the covenants contained in (a) the Existing Credit Agreements or (b) the Indentures, the Company is not party to any material Contract, and is not subject to any provision in the Company Charter Documents or resolutions of the Board that, in each case, by its terms prohibits or prevents the Company from paying dividends in form and the amounts contemplated by the Certificate of Designations. The Company and its Subsidiaries are not in material breach of, or default or violation under, the Existing Credit Agreements or the Indentures.
Ability to Pay Dividends. Except with respect to the covenants contained in (a) the Existing Credit Agreement or (b) the Indenture, the Company is not party to any material Contract, and is not subject to any provision in the Company Charter Documents or resolutions of the Board that, in each case, by its terms prohibits or prevents the Company from paying dividends in form and the amounts contemplated by the Certificate of Designations or from redeeming the Series A Preferred Stock in the manner and at the times contemplated by the Certificate of Designations. The Company and its Subsidiaries are not in material breach of, or default or violation under, the Existing Credit Agreement or the Indenture.
Ability to Pay Dividends. Except for the limitations imposed by the DGCL, including Section 170 thereof, the Company is not party to any Contract, and is not subject to any provision in the Charter or resolutions of the Company Board that, in each case, by its terms prohibits or prevents the Company from paying dividends in the form and the amounts contemplated by the Series A Certificate of Designations.
Ability to Pay Dividends. Except with respect to the covenants contained in the Existing Credit Agreement, none of Parent or any of its Subsidiaries is party to any material Contract, or subject to any provision in the Charter Documents or resolutions of their governing bodies that, in each case, by its terms prohibits or prevents Parent or the Company from paying dividends in form and the amounts contemplated by the Certificate of Designations.