§51b Dividends, voting, and retirement of preferred stock; individual liability

Summary

Preferred stock owners may be given cumulative dividends, voting and conversion rights, control features, and ways the stock can be retired, if those things are written in the bank’s articles and approved by the Comptroller of the Currency. Those preferred holders are not personally responsible for the bank’s debts or contracts and are not liable for capital-restoration assessments that apply to common stockholders. No dividends can be paid on common stock until all cumulative dividends on the preferred stock are paid. If the bank goes into voluntary liquidation or a conservator or receiver is appointed, common stockholders get nothing until preferred holders have been paid the par value of their stock plus all accumulated dividends.