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Securities Law Commons

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University of Michigan Law School

Journal

1935

Dissolution

Articles 1 - 2 of 2

Full-Text Articles in Securities Law

Corporations - Right Of Preferred Stockholders To Participate In Dividends Beyond Specified Amount Apr 1935

Corporations - Right Of Preferred Stockholders To Participate In Dividends Beyond Specified Amount

Michigan Law Review

The holders of a minority of the preferred stock of a foundry company petitioned for receivership and repayment of part of the dividends which had been paid to common stockholders, contending that after payment of the stipulated 6 per cent dividend on the preferred stock and a like percentage on the common stock, preferred and common stockholders should participate alike in all further dividends declared. There was no provision in the articles or by-laws of the corporation concerning such participation in dividends. Held, that in the absence of express provision, preferred stockholders are entitled to receive only their guaranteed …


Corporations - Right Of Preferred Stock To Stock Dividend After Payment Of Preferential Dividend Jan 1935

Corporations - Right Of Preferred Stock To Stock Dividend After Payment Of Preferential Dividend

Michigan Law Review

Plaintiff held 500 shares of the common stock of an Illinois corporation, organized by plaintiff and defendant with a capital stock of $160,000, divided into 2000 shares of common and 30,000 shares of preferred stock, each with a par value of $5.00 per share. The statutes of Illinois provided that the capital stock might be divided into classes but that this classification and the rights and duties thereunder must be stated in the articles of incorporation and on the stock certificates. The articles and certificates gave the preferred shares a preference on dissolution, and to dividends to the extent of …