Residual claim

Residual claim

Related: Equity claim

Equity Claim

The right of a shareholder or some other party to the profit of a company after all prior obligations have been paid. Equity claims are perhaps most important in the event of the company's liquidation. Equity claims are also called residual claims.
References in classic literature ?
She was a good woman, Rebecca; she had a quick temper and a sharp tongue, but she wanted to do right, and she did it as near as she could.
She would understand Sarah's sharp tongue, her unhappy brother, the cruelty of Charley Long, the justness of the bookkeeper's beating, the day-long, month-long, year-long toil at the ironing-board.
He did not want Mary Ann, now a woman hard upon middle age with a sharp tongue, to catch them in a compromising position.
She had few friends and bore a reputation of having a sharp tongue.
Sir Patrick's sharp tongue had got the better of him once more.
A quick temper, sharp tongue, and restless spirit were always getting her into scrapes, and her life was a series of ups and downs, which were both comic and pathetic.
He had simply furnished her sharp tongue with a new sting.
110) Li, "A Theory of Ambiguous Property Rights in Transition Economies"; Weitzman and Xu, "Chinese Township and Village Enterprises as Vaguely Defined Cooperatives"; and Zhang, "Decision Rights, Residual Claim and Performance".
During a residual claim, income drops because of economic reasons rather than medical reasons.
Residual claim on income and Senior claim on income and assets
After five years, if the physician enters another occupation fitted for by education, training or experience, said Brokerage Solutions' Petsche, that person would move to a residual claim in which a percentage of lost income would be paid.
The residual claim to these assets after the investors are repaid therefore is a valuable property right which the settlor is unwilling to give up.