DISTRIBUTABLE AMOUNTS Clause Samples
The "Distributable Amounts" clause defines the portion of funds or profits that are available to be distributed among parties, such as shareholders, partners, or beneficiaries, after accounting for necessary deductions like expenses, taxes, or reserves. In practice, this clause outlines the calculation method for determining distributable sums, specifying which revenues are included and what obligations must be settled first. Its core function is to ensure transparency and fairness in the allocation of financial returns, preventing disputes by clearly establishing how and when distributions are made.
DISTRIBUTABLE AMOUNTS. The Company may make distributions of any amounts in excess of its reasonable operating requirements as determined by the Board of Managers. The amounts available for distribution may be generated by operations of the Company through sale, condemnation, financing or refinancing of assets of the Company, by collection of amounts owed to the Company or by any other transaction. In the case of amounts attributable to a Capital Transaction, the net proceeds to be distributed hereunder shall be the net cash proceeds received by the Company after payment of, or provision for, all Company debts, obligations and reserves required or permitted to be paid upon, or incurred or established in connection with, the receipt by the Company of such proceeds (said reserves to be established in the reasonable discretion of the Board of Managers), and all expenses incurred by the Company in connection with the Capital Transaction giving rise to such proceeds. Notwithstanding the foregoing, no distribution shall be made unless after the distribution the Company retains assets sufficient to pay all its debts as they become due and such distribution, if made, would not cause the Company to otherwise become insolvent.
DISTRIBUTABLE AMOUNTS. The Company shall make distribution of any amounts of cash received by the Company in excess of its reasonable operating requirements, as determined pursuant to the unanimous vote of the Members. The amounts available for distribution may be generated by operations of the Company, through the sale, condemnation or refinancing of the Company, by collection of amounts owed to the Company or by any other transaction. Provided, however, no distribution pursuant to this Section 4.1 shall be made unless after the distribution the Company retains assets sufficient to pay all expenses and to establish and maintain such working capital reserves as are required, determined by the unanimous vote of the Members, for the proper operation of the Company’s business.
DISTRIBUTABLE AMOUNTS. The Company may make distributions to the Member of any amount in excess of its reasonable operating requirements as determined by the Manager. Notwithstanding the foregoing, no distribution shall be made unless after the distribution the Company retains assets sufficient to pay all its debts as they become due and such distribution, if made, would not cause the Company to otherwise become insolvent.
DISTRIBUTABLE AMOUNTS. The Partnership may make distributions of any amounts of cash received by the Partnership as determined by the Managing Partner from time to time. Notwithstanding the foregoing, no distribution pursuant to this Section 4.1 shall be made unless after the distribution the Partnership retains assets sufficient to pay all expenses and liabilities of the Partnership.
DISTRIBUTABLE AMOUNTS. Amounts to be distributed to Members (other than in respect of Tax Distributions pursuant to Section 5.10(b)) shall be distributed as follows: