Declaration of Dividends; Dividend Preference Clause Samples

Declaration of Dividends; Dividend Preference. Subject to Article 75, the holders of Preferred Shares shall be entitled to non-cumulative dividends (whether paid in cash or otherwise), at a rate of eight percent (8%) per year, payable out of funds legally available therefore, prior and in preference to the payment of dividends on any other class of shares of the Company (the “Dividend Preference”). Such dividends shall be payable only when, as and if approved by the Board of Directors. Following the full payment of the Dividend Preference, the holders of Preferred Shares shall be entitled to participate, pro rata, in any dividends paid on the Ordinary Shares, on an as-converted basis.