Common use of Distribution of Profits Clause in Contracts

Distribution of Profits. A. The parties hereto recognize that their own and the best interest of the joint Company will be best served by taking all reasonable steps to ensure the expansion of the production facilities of the Joint Company as rapidly as market conditions permit, and to this end, agree to retain sufficient earnings in the Joint Company before distributing profits to the shareholders, as shall be reasonably required in the circumstances to provide for such expansion and for the other requirements of conducting the affairs of the Joint Company according to sound business practices. OR B. Before any profits of the Joint Company shall be distributed as dividends to the shareholders thereof per cent of each year’s net profits after tax shall be set aside to meet the capital and other requirements of the Joint Company.

Distribution of Profits. A. The parties hereto recognize that their own and the best interest of the joint Company will be best served by taking all reasonable steps to ensure the expansion of the production facilities of the Joint Company as rapidly as market conditions permit, and to this end, agree to retain sufficient earnings in the Joint Company before distributing profits to the shareholders, as shall be reasonably required in the circumstances to provide for such expansion and for the other requirements of conducting the affairs of the Joint Company according to sound business practices. OR. B. Before any profits of the Joint Company shall be distributed as dividends to the shareholders thereof thereof…………per cent of each year’s net profits after tax shall be set aside to meet the capital and other requirements of the Joint Company.

Distribution of Profits. A. The parties hereto recognize that their own and the best interest of the joint Company will be best served by taking all reasonable steps to ensure the expansion of the production facilities of the Joint Company as rapidly as market conditions permit, and to this end, agree to retain sufficient earnings in the Joint Company before distributing profits to the shareholders, as shall be reasonably required in the circumstances to provide for such expansion and for the other requirements of conducting the affairs of the Joint Company according to sound business practices. OR. B. Before any profits of the Joint Company shall be distributed as dividends to the shareholders thereof thereof… per cent of each year’s net profits after tax shall be set aside to meet the capital and other requirements of the Joint Company.