We intend to declare and pay quarterly dividends from our net profits to stockholders each February, May, August and November, in amounts the Board of Directors determines are appropriate. However, we may have to make provisions for vessel acquisitions and other obligations that would reduce or eliminate the cash available for distribution as dividends. While we cannot assure you that we will do so, and subject to the limitations set forth below, we expect to declare and pay a dividend of $0.1875 per share per quarter. However, we may incur other expenses or liabilities that would reduce or eliminate the cash available for distribution as dividends. There can be no assurance that we will pay regular quarterly dividends in the future.
Declaration and payment of any dividend is subject to the discretion of our
Board of Directors. The timing and amount of dividend payments will be
dependent upon our earnings, financial condition, cash requirements and
availability, fleet renewal and expansion, restrictions in our loan
agreements, including the loan agreement with Fortis Bank, the provisions of
Marshall Islands law affecting the payment of distributions to stockholders
and other factors. The payment of dividends is not guaranteed or assured,
and may be discontinued at any time at the discretion of our Board of
Directors. Because we are a holding company with no material assets other
than the stock of our subsidiaries, our ability to pay dividends will depend
on the earnings and cash flow of our subsidiaries and their ability to pay
dividends to us. If there is a substantial decline in the LPG carrier
market, our earnings would be adversely affected thus limiting our ability
to pay dividends. Marshall Islands law generally prohibits the payment of
dividends other than from surplus or while a company is insolvent or would
be rendered insolvent upon the payment of such dividend. There can be no
assurance that dividends will be paid in the anticipated amounts and
frequency set forth in the prospectus.
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Corporate Governance
