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Corporations - Rate Of Interest On Bonds And Interest Coupons After Maturity
Corporations - Rate Of Interest On Bonds And Interest Coupons After Maturity
Michigan Law Review
Defendant issued a series of coupon junior income bonds with interest at 5 per cent payable from income at such times as directors deemed prudent. The bonds and some of the coupons not having been paid at maturity, defendant maker redeemed them thereafter with interest to the redemption date at the contract rate (5 per cent). Plaintiff, holder of bonds and coupons, sues to recover the legal rate of interest (6 per cent) after maturity of bonds and coupons. Held, (1) The local law where payable will be followed as to interest on the bond after maturity (in Massachusetts …
Corporations-Dividends On Non-Cumulative Preferred Stock
Corporations-Dividends On Non-Cumulative Preferred Stock
Michigan Law Review
Plaintiff held non-cumulative preferred stock in the defendant corporation. From 1925 through 1928 no dividends were declared upon this stock; although earnings were sufficient they were used instead for property improvements. Since 1928, dividends have been paid regularly on this stock at the specified rate. In 1930 a dividend was declared on the common stock. Plaintiff sued to have this amount paid instead as a dividend on the preferred stock, and to enjoin any payment of dividends on the common stock until full dividends were paid on the non-cumulative preferred stock for the period from 1925 to 1928. Held, …