Common use of Determination of whether stock confers identical rights to distribution and liq- uidation proceeds Clause in Contracts

Determination of whether stock confers identical rights to distribution and liq- uidation proceeds. (i) The law of State A re- quires that permission be obtained from the State Commissioner of Corporations before stock may be issued by a corporation. The Commissioner grants permission to S, a cor- poration, to issue its stock subject to the re- striction that any person who is issued stock in exchange for property, and not cash, must waive all rights to receive distributions until the shareholders who contributed cash for stock have received distributions in the amount of their cash contributions.