llcs-corporations-partnerships

Definition

See: Shareholder Derivative Suit.

Definition

See: shareholder.

Definition

Equity ownership in a corporation, entitling the owner to share in the profits of the corporation.

See also

• Common stock
• Shareholders' agreement

Definition

A printed certificate issued by a corporation to a shareholder, documenting ownership in a stated number of a shares of that corporation's stock.

See also

• Stock
• Corporation

Definition

A business entity owned and managed by one individual. The owner, called a sole proprietor, does not pay separate income tax on the company, but reports all losses and profits on his/her individual tax return. Because the owner is indistinguishable from the business, he/she remains personally liable for all debts of the business.

See also

• Self-employed
• Limited liability

Definition

Stands for Strategic Lawsuit Against Public Participation. Lawsuit filed strategically by a corporation against a group or activist opposing certain action taken by the corporation, usually in the realm of an environmental protest. Typical claims underlying a SLAPP suit are libel, slander or restraint of business. Many states have adopted anti-SLAPP statutes in the interest of protecting free speech that provide for speedy hearings of the claims and the possibility of the defendant recovering legal fees and punitive damages.

Definition

Member of a partnership who shares in the partnership's profits and losses but is not involved in active management of the company. A silent partner could still be personally liable for the company's debts unless the partnership is a limited liability partnership.

See also

• Partnership
• Limited liability partnership (LLP)

Definition

A binding contract between the shareholders of a corporation, defining the shareholders' rights, privileges, protections and obligations. The shareholder's agreement usually includes the corporation's articles of incorporation and bylaws. 

See also

• Articles of incorporation
• Buy-sell agreement

Definition

Meeting of the shareholders of a corporation, held at least annually, to elect members to the board of directors and hear reports on the business' financial situation as well as new policy initiatives from the corporation's management. In larger corporations, many shareholders vote via proxy.

See also

• Annual meeting
• Proxy

Definition

See: Shareholder Derivative Suit.