Corporations Organization Financing Management

Cover Corporations Organization Financing Management
Corporations Organization Financing Management
Albert Hutchinson Putney
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Its chief character- istics are that it is limited in amount to two-fifths of the actual capital; it is limited in amount to two- fifths of the actual capital; it is subject to redemp- tion by the corporation at par after a fixed time, to be expressed in the certificate; the corporation is bound to pay a fixed half-yearly sum, or dividend, upon it as a debt; the holders of it are in no event liable for the debts of the corporation beyond their stock, and the issue of this special stock makes al...l the general stockholders liable for all debts and con- tracts of the corporation until the special stock is fully redeemed. Special stock can be issued only by a vote of three-fourths of the general stockholders of the company at a meeting duly called for that pur- pose. The guarantee of dividends of special stock in Massachusetts is an absolute one, and not in any degree conditional upon the earning of sufficient profits by the corporation. ''^ Section 67— Issued, Non-Issued, Over-Issued Stock.

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