Accumulated earnings represent a company’s net profit after having distributed dividends to the stockholders. It is often used in accounting to determine how much net profits a company has left after having paid dividends. To calculate...
llcs-corporations-partnerships
See: agent for service of process
[Last updated in March of 2022 by the Wex Definitions Team]
An agent for service of process is the person designated by a business entity, such as a corporation or limited liability company (LLC), to receive legal documents and lawsuits on behalf of the business entity within the state in which the...
Alter ego is a legal doctrine whereby the court finds that a corporation lacks a separate identity from an individual or corporate shareholder. The court applies this rule to ignore the corporate status of a group of stockholders, officers,...
Annual meeting refers to the shareholders' general meeting held yearly on the date or according to the formula by which such a meeting date will be fixed, as prescribed in the corporation's bylaws. The purpose of the annual meeting is for...
An anti-greenmail provision is a provision within a corporate charter that prevents the company’s board of directors from making greenmail payments.
Greenmail payments refer to payments made by a corporation to buy out the...
An article is a legal rule that can be set out under a statute, a code, or a paragraph in a legal document. Articles usually refer to matters that have been agreed upon by the supervising authority. For example, in contracts, an article under...
Articles of Incorporation refers to the highest governing document in a corporation. It is also known known as the corporate charter. The Articles of Incorporation generally include the purpose of the corporation, the type and number of...
The articles of organization are a public and official document used to create a limited liability company (LLC). The LLC members must file the articles of organization before the relevant state authority (usually the Secretary of State) for...
An association is an unincorporated organization of people banded together for a specific purpose. Generally associations are tax exempt under nonprofit 501 exemption, however, if an association has certain features that make it look like a...