Dividends and Subdivisions Clause Samples
The "Dividends and Subdivisions" clause defines how a company handles the distribution of profits to shareholders and the process for splitting or consolidating shares. It typically outlines the procedures for declaring and paying dividends, as well as the mechanics for adjusting share capital through subdivisions (splitting shares into smaller units) or consolidations (combining shares into larger units). This clause ensures that all shareholders are treated fairly during such corporate actions and provides clarity on how changes to share structure or profit distributions are managed, thereby preventing disputes and maintaining transparency.
Dividends and Subdivisions. In case, prior to the expiration of this Warrant by exercise or by its terms, the Company shall issue any shares of its Common Stock as a stock dividend or subdivide the number of outstanding shares of its Common Stock into a greater number of shares, then in either of such cases, the then applicable Warrant Price per Warrant Share purchasable pursuant to this Warrant in effect at the time of such action shall be proportionately reduced and the number of Warrant Shares at that time purchasable pursuant to this Warrant shall be proportionately increased; and conversely, in the event the Company shall reduce the number of outstanding shares of Common Stock by combining such shares into a smaller number of shares, then, in such case, the then applicable Warrant Price per Warrant Share purchasable pursuant to this Warrant in effect at the time of such action shall be proportionately increased and the number of Warrant Shares at that time purchasable pursuant to this Warrant shall be proportionately decreased. If the Company shall, at any time during the life of this Warrant, declare a dividend payable in cash on its Common Stock and shall at substantially the same time offer to its stockholders a right to purchase new Common Stock from the proceeds of such dividend or for an amount substantially equal to the dividend, all Common Stock so issued shall, for the purpose of this Warrant, be deemed to have been issued as a stock dividend. Any dividend paid or distributed upon the Common Stock in stock of any other class of securities convertible into shares of Common Stock shall be treated as a dividend paid in Common Stock to the extent that shares of Common Stock are issuable upon conversion thereof.
Dividends and Subdivisions. In case the Corporation shall at any time subdivide its outstanding shares of Common Stock into a greater number of shares or declare a dividend or make any other distribution upon the Common Stock of the Corporation payable in Common Stock, the Purchase Price shall be proportionately reduced and the number of shares of Common Stock as shall then be issuable upon the exercise of this Warrant immediately prior to such subdivision, dividend or distribution shall be proportionately increased, and conversely, in case the outstanding shares of Common Stock of the Corporation shall be combined into a smaller number of shares, the Purchase Price shall be proportionately increased and the number of shares of Common Stock as shall then be issuable upon the exercise of this Warrant immediately prior to such combination shall be proportionately reduced.