Subsidiary Funds Clause Samples
The Subsidiary Funds clause establishes the creation and management of separate financial accounts or funds that are subordinate to a primary fund or account. In practice, this clause outlines how these subsidiary funds are to be set up, maintained, and used for specific purposes, such as earmarking resources for particular projects or operational needs within a larger organization. Its core function is to ensure clear financial segregation and accountability, preventing the commingling of resources and facilitating targeted financial oversight.
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Subsidiary Funds. To the extent permitted by law, the Company shall in good faith use all reasonable efforts as expeditiously as possible to increase the amount of legally available redemption funds including without limitation, procuring that the profits and other funds of each Subsidiary of the Company for the time being available for distribution to be paid to it by way of dividend if and to the extent that the Company would not itself otherwise have sufficient profits available for distribution to make any redemption of Preferred Shares required to be made pursuant to this Section 5.