A seasoned corporation proposing to sell securities which are nonparticipating and nonconvertible on a fair and equitable basis must show its ability to meet the proposed dividend, interest and sinking fund requirements on all of its securities outstanding and proposed to be issued based upon its previous earnings or cash-flow history or demonstrated future earning or cash-flow capacity.

Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25140, Corporations Code.

History

1. Amendment filed 5-3-83; effective thirtieth day thereafter (Register 83, No. 19).