Dividends Flashcards
1
Q
Priority of Payments - Common Stock
A
Paid last and equally
2
Q
Priority of Payments - Preferred stock
A
Paid first
3
Q
Priority of Payments - Preferred Participating
A
Paid twice - once with preferred stock and then again with common stock
4
Q
Priority of Payments - Cumulative Preferred
A
Paid for the years in which there was no dividend
5
Q
When can Corp not issue a dividend?
A
If they are insolvent or it would cause insolvency
6
Q
Who is liable for wrongful dividend issuance?
A
Directors individually liable
Can get contribution from other defendants
