The cast-iron-pipe doctrine, also referred to as the dividend-credit rule, dictates that a company must allocate its reserve fund, consisting of unpaid dividends on preferred stock, to pay dividends on preferred stock before distributing dividends on common stock. Consequently, preferred stockholders are given precedence over common stockholders in receiving dividend payments from the company.
The cast-iron-pipe doctrine, also referred to as the dividend-credit rule, establishes that a company’s reserve fund, generated from unpaid dividends on preferred stock, must be utilised to pay subsequent dividends on preferred stock prior to distributing any dividend payments on common stock. To illustrate, if a company possesses both preferred and common stock and has accumulated a reserve fund from unpaid dividends on preferred stock, it is obligated to utilise that fund to pay dividends to preferred stockholders before disbursing any dividends to common stockholders. This doctrine is significant as it ensures that preferred stockholders receive their dividends before common stockholders, which is equitable given that preferred stockholders hold a higher priority in receiving dividends.
The Cast-Iron-Pipe Doctrine is a legal principle that holds a landowner responsible for maintaining and repairing cast iron pipes that run through their property, even if the pipes are owned by a utility company.
According to the Cast-Iron-Pipe Doctrine, the landowner is responsible for the maintenance and repair of cast iron pipes that run through their property.
Yes, if a cast iron pipe failure causes damages to neighboring properties or individuals, the landowner can be held liable for those damages.
Yes, if a cast iron pipe failure causes injuries to individuals on the property or neighboring properties, the landowner can be held liable for those injuries.
Yes, under the Cast-Iron-Pipe Doctrine, the landowner can be held responsible for the cost of replacing cast iron pipes that run through their property.
There may be exceptions to the Cast-Iron-Pipe Doctrine depending on the specific laws and regulations in a particular jurisdiction. It is advisable to consult with a local attorney to understand the specific rules in your area.
In some cases, a landowner may be able to seek reimbursement from the utility company for the cost of maintaining and repairing cast iron pipes. This would depend on the terms of any agreements or contracts between the landowner and the utility company.
Generally, a landowner cannot refuse access to the utility company for maintenance or repair of cast iron pipes. The utility company typically has an easement or right-of-way to access and maintain their infrastructure.
In certain circumstances, a landowner may be held responsible for the cost of relocating cast iron pipes. This could occur if the landowner initiates a construction project that requires the relocation of the pipes.
In most cases, the responsibility for maintaining and repairing cast iron pipes cannot be transferred to a tenant or lessee. The landowner remains ultimately responsible for the upkeep of the pipes, regardless of any agreements with tenants or lessees.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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