No Dividend Clause Samples
The No Dividend clause prohibits the payment of dividends to shareholders during a specified period or under certain conditions. Typically, this clause is included in loan agreements or investment contracts to ensure that company profits are retained within the business rather than distributed to shareholders, especially when financial obligations to creditors or investors are outstanding. Its core function is to protect the interests of lenders or investors by prioritizing the company's financial stability and repayment of debts over shareholder payouts.
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No Dividend. Retirement or Purchase of Stock: Not to declare or pay any dividend or distribution, in cash or otherwise, or any shares of stock of the Seller or redeem, return, purchase or otherwise acquire directly or indirectly any shares of stock.
No Dividend. Except as set forth on Schedule 2.05(d), Sellers will not declare, set aside or make payment of any dividend or other distribution in respect of its equity interests, or take any of the other actions listed in clauses (i) through (v) of Section 2.05(d).
No Dividend. 21 4.06 Fulfillment of Conditions .......................................... 21
No Dividend. The Guarantor shall not, and shall procure that the Charterer will not, make or pay any dividend or other distribution (in cash or in kind) in respect of its issued shares following the occurrence of a Potential Termination Event or a Termination Event, or if such payment or distribution will result in the occurrence of a Termination Event.
No Dividend. The Borrower shall not reduce its capital or make any payments (directly or indirectly, by offset or otherwise) to any of its shareholders, or authorize or make any other distribution, payment or delivery of property or cash to any such person, or redeem, retire, purchase or otherwise acquire, directly or indirectly, for consideration, any shares of any class of its capital stock now or hereafter outstanding (or any options or warrants issued by the Borrower with respect to its capital stock) or set aside any funds for any of the foregoing purposes (each of the foregoing events being a “Restricted Payment”), or enter into any profit sharing or royalty arrangement that would have the effect of a Restricted Payment, (i) if after giving effect to such Restricted Payment the aggregate amount of the Cash Balance would be less than US$500,000,000, or (ii) in contravention of applicable law.
No Dividend. RETIREMENT OR PURCHASE OF STOCK: Not to declare or pay any dividend or distribution, in cash or otherwise, on any shares of stock of the Company or redeem, return, purchase or otherwise acquire directly or indirectly any shares of stock.
No Dividend. Since the Last Balance Date, no dividend, bonus issue or other distribution or repayment of any loan is in arrears or has been declared, made or paid by the Brand Companies, except as provided in the Last Accounts.
No Dividend. Until the Scheme is Effective, Target must not declare or pay a dividend other than the Ordinary Dividend and the Special Dividend.
No Dividend. From the date of this Agreement until the First Closing, no dividend or other distributions has been paid directly or indirectly to any Founder, or any shareholder of any Group Company, unless with the prior written approval of the Investor.