Dividends Cumulative Clause Samples
The "Dividends Cumulative" clause establishes that if dividends are not paid in a given period, they accumulate and must be paid out in the future before any dividends can be distributed to other shareholders. This typically applies to preferred shares, ensuring that any missed dividend payments are carried forward and prioritized over common shareholders' dividends. The core function of this clause is to protect preferred shareholders by guaranteeing their right to receive all accrued dividends, thereby reducing their investment risk and ensuring payment priority.
Dividends Cumulative. Notwithstanding anything contained in this Section 3, dividends on the Series 6 Preferred Units will accrue whether or not the terms and provisions of any agreement of the Partnership, including any agreement relating to its indebtedness, at any time prohibit the current payment of dividends, whether or not the Partnership has earnings, whether or not there are funds legally available for the payment of such dividends, and whether or not such dividends are declared. Accrued but unpaid dividends on the Series 6 Preferred Units shall accumulate as of the Dividend Payment Date on which they first become payable. Dividends on account of arrears for any past dividend periods may be declared and paid at any time, without reference to a regular Dividend Payment Date to holders of record of the Series 6 Preferred Units on the record date fixed by the Board of Directors which date shall be not less than 10 days and not more than 30 Business Days prior to the payment date. Accrued and unpaid dividends shall not bear interest.
Dividends Cumulative. Each Preference Dividend is a cumulative preference dividend which, to the extent that it is not paid on a Dividend Date (whether or not it is declared or required to be paid on that date), will accumulate and remain payable in full under these Preference Share Terms.
Dividends Cumulative. Preferred Stock shall be cumulative and accrue from and after the date of original issuance thereof, whether or not declared by the Board of Directors. Accrued dividends shall not bear interest.
Dividends Cumulative. Dividends on the Series A Preferred Units shall accrue whether or not the terms and provisions of any agreement of the Partnership, including any agreement relating to its indebtedness at any time prohibit the current payment of dividends, whether or not the Partnership has Available Cash Flow, whether or not there are funds legally available for the payment of such dividends and whether or not such dividends are authorized. Accrued but unpaid dividends on the Series A Preferred Units shall accumulate as of the Dividend Payment Date on which they first become payable. If cash dividends on the Series A Preferred Units are in arrears and unpaid for a period of sixty (60) days or more, then an additional amount of dividends shall accrue on such amount in arrears at a rate equal to fifteen percent (15.00%) per annum (the " Default Rate") from the applicable Dividend Payment Date until paid. Any dividend payment made on the Series A Preferred Units shall first be credited against any accrued but unpaid dividends with respect to such Series A Preferred Units and then to any current dividends required to be paid.
Dividends Cumulative. Dividends shall begin to accrue and be cumulative on outstanding shares of Series A Stock from the Quarterly Dividend Payment Date next preceding the date of issue of such shares of Series A Stock, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of shares of Series A Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of Series A Stock in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series A Stock entitled to receive payment of a dividend or distribution declared thereon, which record date shall be no more than 60 days prior to the date fixed for the payment thereof.