Deep Rock doctrine

Definition of "Deep Rock doctrine"
  1. A principle that establishes the rights of an investor, particularly one with a controlling stake, who provides a loan to their corporation. According to this doctrine, such a loan will be given lower priority compared to the claims of external creditors if the company is considered to lack sufficient capital
How to use "Deep Rock doctrine" in a sentence
  1. The member of the board relied on the Deep Rock doctrine when deciding how to handle the company's debts.
  2. The Deep Rock doctrine was used in this case to prioritize the payment to external creditors over the repayment of the shareholder's loan.
  3. When the corporation faced financial challenges, the loan provided by the majority shareholder was subdued to the claims of other creditors because of the Deep Rock doctrine.

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