Filed Under: Corporate and Commercial Law
1 definition found for this term.
Definitions are presented in the order source books were published (most recent first).
If something must be divided rateably, it must be allocated among all members of the class of persons entitled to share in the distribution in proportion to their interests. So, if a dividend in the amount of $1,000,000 were declared and there were ten shares outstanding, it would be distributed rateably if each were paid an equal proportion of the total dividend amount — in this example, $100,000. This is how dividends must be paid in the absence of some special entitlement for a particular class of shares set out in the corporation’s articles.