Dividends Upon Conversion Sample Clauses
The "Dividends Upon Conversion" clause defines how dividends are handled when convertible securities, such as preferred shares, are converted into common stock. Typically, this clause specifies whether holders are entitled to receive any declared but unpaid dividends at the time of conversion, or if such rights are forfeited upon conversion. For example, it may state that accrued dividends must be paid out in cash or additional shares before or at the time of conversion. The core function of this clause is to clarify the financial entitlements of security holders during conversion events, thereby preventing disputes and ensuring fair treatment of investors.
Dividends Upon Conversion. In connection with any conversion of shares of Series A Preferred Stock, the Corporation shall pay accrued and unpaid dividends thereon in accordance with the provisions of Section 6.
Dividends Upon Conversion. Upon any conversion of the Series I Preferred Stock pursuant to this Section 6, the Corporation shall pay to the holder of the Series I Preferred Stock so converted (in accordance with Section 3(b) above) any dividends in respect of such shares that have accrued through the immediately preceding Dividend Payment Date and that have not yet been paid (if any), and all dividends that have accrued since the last Dividend Payment Date shall be waived and cancelled in accordance with Section 3(e) above.
Dividends Upon Conversion. Upon conversion, all accrued and unpaid dividends (whether or not declared), if any, on the Series A Preferred Stock shall be canceled.
Dividends Upon Conversion. In connection with any conversion of shares of Series B Preferred Stock, the Corporation shall pay accrued and unpaid dividends thereon in accordance with the provisions of Section 7(d).