Rights on Dissolution Clause Samples
The 'Rights on Dissolution' clause defines how the assets, liabilities, and obligations of a company or partnership are handled when the entity is dissolved. Typically, this clause outlines the order in which debts are paid, how remaining assets are distributed among stakeholders, and any special procedures for winding up affairs. For example, it may specify that creditors are paid first, followed by distributions to shareholders or partners according to their ownership interests. The core function of this clause is to ensure an orderly and fair process for settling accounts and distributing property when the business ends, thereby minimizing disputes and clarifying expectations for all parties involved.
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Rights on Dissolution. In the event of the liquidation, dissolution or winding-up of the Corporation, the holders of the Class “A” Common Shares are entitled to receive on a pro rata basis and on a share-for-share basis with the holders of the Common Shares, all of the assets of the Corporation remaining after payment of all of the Corporation's liabilities.
Rights on Dissolution. The holders of the Common Shares shall be entitled, subject to the rights, privileges, restrictions and conditions attaching to any other class of shares of the Corporation, to receive the remaining property of the Corporation on a liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary. SCHEDULE "A" NOTICE OF RETRACTION TO: Commstar Ltd. (the "Corporation") and Applied Cellular Technology, Inc. ("Applied")
Rights on Dissolution. On dissolution of the Company, before any payment or distribution shall be made to the owner of the Ordinary Unit, if such dissolution is involuntary, each Member owning Preference Units shall be entitled to be paid the sum of $100,000 per Preference Unit, or, if such dissolution is voluntary, each Member owning Preference Units shall be entitled to be paid the amount established by the Board, plus an amount equal to all accumulated and unpaid distributions thereon to the date of such payment, whether or not such distributions have been earned or declared. After such payments shall have been made in full to all Members owning Preference Units, Preference Units shall be entitled to no further payment or distribution. For the purposes of this Section 7(e), a consolidation or merger to which the Company shall be a party shall not be deemed a dissolution of the Company within the meaning of this Section 7(e).
Rights on Dissolution. In the event of the liquidation, dissolution or winding up of the Corporation whether voluntary or involuntary, the holders of Class B Shares shall be entitled to receive in respect of each such share, before any distribution of any part of the assets of the Corporation among the holders of any other class of shares of the Corporation ranking junior to the Class B Shares, an amount equal to the Class B Share Redemption Amount of the Class B Shares held and any declared but unpaid dividends thereon but shall have no further right in or to the assets of the Corporation.
Rights on Dissolution. In the event of the liquidation, dissolution or winding-up of the Corporation (whether voluntary or involuntary), reduction of capital or other distribution of its assets among the shareholders by way of repayment of capital, the holders of the Series 1 Preferred Shares shall be entitled to receive in respect of each such share, before any distribution of any part of the assets of the Corporation among the holders of the Common Shares, an amount equal to the Redemption Price (as hereinafter defined) and no more.
Rights on Dissolution. In the event of the liquidation, dissolution or winding-up of the Corporation whether voluntary or involuntary, the holder of the Series A Preferred Share shall be entitled to receive in respect of such share, before any distribution of any part of the assets of the Corporation among the holders of any other class of shares of the Corporation ranking junior to the Series A Preferred Share, an amount equal to $.01 per Series A Preferred Share.
Rights on Dissolution. The rights of the preferred shareholders upon dissolution or winding up is the preferential right to participate in any distribution or liquidation or dissolution of the Company. VOTING RIGHTS The Series A Preferred Shareholders have the right to vote in the same manner and on the same matters as do the holders common stock, except in circumstance where the Company is deemed to be in default of its obligations to the holders of the Series A Preferred Shareholders. See paragraph 6 of this article for the additional voting rights associated with the holders of preferred shares.