--- From Prospectus ---
The terms of the Series A Preferred Stock do not permit XXXX to declare, set apart or pay any dividend or make any other distribution of assets on, or redeem, purchase, set apart or otherwise acquire shares of common stock or of any other class of stock of XXXXX ranking junior to the Series A Preferred Stock as to the payment of dividends or as to the distribution of assets upon liquidation, dissolution or winding up of XXXX, unless certain conditions are met.
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I am a current holder of this companies preferred stock. The company is currently experiencing operating difficulties and has already suspended common stock dividends. I suspect the preferred dividends may be halted next. However, the company uses stock options to hire and retain top management. If those options cannot be granted or exercised, I think that would give managment incentive to not halt the preferred dividends.
2006-12-09
10:50:45
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1 answers
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asked by
Roger
1