Non Cumulative Dividend Law and Legal Definition
Non cumulative dividend is a dividend on preferred stock which does not cumulate upon omission of payment so as to require payment of a passed or omitted dividend of one year out of earnings of a following year. A non cumulative dividend once passed or omitted is dead. It can never be made up or it does not accrue for the benefit of a preferred shareholder.
“Where the directors did not abuse their discretion in withholding dividends on the non-cumulative preferred stock for any past years, no right survived to have those dividends declared, and the directors had no discretion whatever to declare those dividends subsequently.” [Guttmann v. Illinois C. R. Co., 189 F.2d 927 (2d Cir. 1951)]
Legal Definition list
- Non Culpabilis
- Non Convertible Debentures
- Non Contingent Debt
- Non Contestability Clause
- Non Conformity
- Non Cumulative Dividend
- Non Damnificatus
- Non Debeo Melioris Conditionis Esse, Quam Auctor Meus A Quo Jus In Me Transit
- Non Debet Actori Licere, Quod Reo Non Permittitur
- Non Disclosure Agreement
- Non Disparagement Agreement
Related Legal Terms
- Ab Abusu Ad Usum Non Valet Consequentia
- Ab Assuestis Non Fit Injuria
- Absoluta Sententia Expositore Non Indiget
- Accessorium Non Ducit Sed Sequitur Suum Principale
- Accrued Dividend
- Accumulative Judgment
- Accumulative Legacy
- Accumulative Sentence
- Actus Me Invite Factus Non Est Meus Actus
- Actus Non Facit Reum Nisi Mens Sit Rea
