Ohio Clauses Relating to Dividends, Distributions
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How to fill out Clauses Relating To Dividends, Distributions?
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FAQ
The board of the company must acknowledge by way of a resolution that it has applied the solvency and liquidity test and reasonably concluded that the company will satisfy the test immediately after completing the proposed distribution.
Dividend payment decisions are made by the director, or board of directors, so shareholders cannot force or demand dividends. Dividend payments can also only be up to the recommended limits set by the directors.
Right to Receive Dividends It is one way for investors to see a return on their investment. Directors decide if and when to declare dividends.
A dividend is the distribution of some of a company's earnings as cash to a class of its shareholders. Dividends typically are credited to a brokerage account or paid in the form of a dividend check.
A shareholder can obtain an injunction compelling payment of a reasonable dividend where the corporation is withholding dividends in bad faith for a fraudulent or abusive purpose. Once a dividend has been declared by the corporation, it is a debt of the corporation, and shareholders may bring suit to compel payment.
Definition: Dividend refers to a reward, cash or otherwise, that a company gives to its shareholders. Dividends can be issued in various forms, such as cash payment, stocks or any other form. A company's dividend is decided by its board of directors and it requires the shareholders' approval.
If dividends are to be paid, a company will declare the amount of the dividend and all relevant dates. Then, all holders of the stock (by the ex-date) will be paid ingly on the upcoming payment date. Investors who receive dividends can choose to take them as cash or as additional shares.