§ 27-1-26 - Principles for classification of creditors and stockholders. - Rhode Island Statutes

SECTION 27-1-26

   § 27-1-26  Principles for classification ofcreditors and stockholders. – For the purposes of §§ 27-1-23 – 27-1-25, the followingprinciples shall be applied in determining classes of creditors andstockholders; provided, that as to any situation not covered by the principles,the court may make any further determination of classes, not inconsistent withthe principles, that may be fair and equitable:

   (1) Creditors. No creditor whose claim is whollysecured shall be included in any class provided for under this chapter, norhave any right to vote at any meeting of creditors as long as the plan does notimpair that security. Any creditor whose claim is partially secured shall,unless the creditor releases his or her right to the security, be included inthe class of general creditors, but shall be entitled to vote only as to theportion of his or her claim in excess of the value of the security; and

   (2) Stockholders. Common or capital stock andpreferred stock shall be classified as separate classes of stock. Common orcapital stock of the same par value, regardless of series or number of issues,and preferred stock of the same par value, regardless of series or number ofissues, shall constitute only one class of common or capital or preferredstock, unless the charter of the company specifically otherwise provides, inwhich event the provisions of the charter shall be controlling.