Income and Capital Clause Samples
The 'Income and Capital' clause defines how income generated and capital assets are to be treated, distributed, or managed under an agreement or trust. Typically, this clause distinguishes between regular earnings (such as interest, dividends, or rent) and the principal or original assets, specifying who is entitled to receive each and under what circumstances. For example, beneficiaries may receive income distributions periodically, while capital may be preserved or distributed at a later date. This clause ensures clarity in the allocation of financial benefits and responsibilities, preventing disputes over entitlements and maintaining the intended structure of asset management.
Income and Capital. The Trustees shall have full discretion to determine which items shall be treated as income and which items as capital; and each such determination and allocation shall be conclusive and binding upon the Shareholders.
Income and Capital. (a) The Trustees may acquire:
(i) wasting assets and
(ii) assets which yield little or no income for investment or any other purpose.
(b) The Trustees are under no duty to procure distributions from a company in which they are interested.
Income and Capital. Subject to paragraph 2 below, the Deferred Shares shall not confer on the holders thereof any entitlement to any participation in the profits or the assets of Ultramast.
Income and Capital. (a) The Trustees are under no duty to procure distributions from a company in which they are interested.
(b) The Trustees may pay taxes and other expenses out of capital or income whether or not they would otherwise be so payable.
Income and Capital. LPMI agrees to pay PPI its standard fees for providing cGMP processes and systems for drug development and formulation to PPI including management of facility improvements and hiring of required personnel. · BWII to provide $5 million in new capital required for the intended purchase.
Income and Capital. 7.1 All monies received by the Trust shall be applied by it in making the following payments in the order set out in this clause 7.
7.2 Out of the Income the Trustee shall:
Income and Capital. 3.1 Holders of Preference Shares shall be entitled to receive an amount equal to the Preference Share Entitlement in preference and priority to any assets of the Company being distributed or paid to any holders of Ordinary Shares. Additionally, if any distribution is declared and paid on any Ordinary Shares, at the same time a distribution in an equal amount per Share shall also be declared and paid on all Preference Shares on an "as converted" basis. The right to such distributions on Preference Shares shall not be cumulative and no rights shall accrue to holders of Preference Shares by reason of the fact that distributions on Ordinary Shares are not declared in any year.
3.2 The Preference Dividend shall be paid in cash, accrue on a daily basis and shall be paid on each Preference Dividend Payment Date in respect of the immediately preceding Preference Dividend Period.
3.3 The Preference Dividend shall be cumulative. Notwithstanding anything contained in this Schedule or the Articles, the Directors do not need to declare it. Any Preference Dividend shall become a debt due from and immediately payable by the Company to the holders of Preference Shares on:
(a) the Preference Dividend Payment Date if such debt can lawfully arise on such date or dates;
(b) otherwise as soon afterwards as such debt can lawfully arise.
3.4 If the Company fails to pay in full any Preference Dividend on the relevant Preference Dividend Payment Date:
(a) on the Preference Dividend Payment Date in question the Company shall pay to the relevant holders of Preference Shares on account of the relevant Preference Dividends the maximum sum (if any) which can lawfully be paid by the Company;
(b) the whole amount of any unpaid Preference Dividend shall be increased by six per cent (6%) per annum (such amount accruing on a daily basis from the relevant Preference Dividend Payment Date until the date or dates of actual payment); and
(c) all arrears of Preference Dividend shall be carried forward and on each succeeding Preference Dividend Payment Date the Company shall pay on account of any outstanding balance, in the order of priority set out in Clause 3.5, such amount as can then lawfully be paid, and this procedure shall continue until such time as the relevant arrears have been paid in full.
3.5 Whenever there are arrears of Preference Dividend outstanding, any funds of the Company which are available for lawful distribution shall be applied in the following order and priority:
(a) firs...
Income and Capital. 1.6.1 The Trustees are not required to maintain a balance between income and capital.
1.6.2 The Trustees are under no duty to procure distributions from a company in which they are interested.
1.6.3 The Trustees may pay taxes and other expenses out of income although they would otherwise be paid out of capital.
1.6.4 The Trustees are under no duty to balance conflicting interests of Beneficiaries.
1.6.5 Income may be set aside and invested to meet any liabilities which in the opinion of the Trustees ought to be borne out of income or to meet depreciation of the capital value of any Trust Property.
Income and Capital