business organizations

derivative action

A derivative action is a type of lawsuit in which the corporation asserts a wrong against the corporation and seeks damages.

Derivative actions represent two lawsuits in one: (1) the failure of the board of directors to sue...

devolution

Devolution is the transfer or delegation of power from a central government to a subnational, local authority. Prominent examples of devolution include the powers granted to Scottish Parliament, the National Assembly of Wales, and the...

dilution

In law, dilution refers to the use of a mark or trade name in commerce that is sufficiently similar to a famous mark that by association it confuses or diminishes the public's perception of the famous mark. For example, an appliance company...

director

In a corporation, a director is a person, appointed or elected by the shareholders to sit on the board of directors. Directors have the authority to implement corporate policy, and act by voting to pass board resolutions. Directors act as...

disregarding the corporate entity

Disregarding the corporate entity is also known as the “alter ego doctrine” or “piercing the corporate veil.” Generally, shareholders of a corporation are protected from being held personally liable for the corporation. If, however, the court...

dissolution

Dissolution is the act of bringing an end or termination of a legal relationship between two parties, such as a partnership, contract or marriage.

In the context of partnership law, dissolution is a fundamental change of...

dissolution of corporation

Dissolution of corporation refers to the closing of a corporate entity which can be a complex process. Ending a corporation becomes more complex with more owners and more assets. For every corporation, the starting point for ending the...

distribution

Distribution is the act of dividing assets to one of several beneficiaries, as named in a trust or a will by a court. Also refers to (i) the payment of capital gains from an investment company to shareholders upon the sale of securities or...

distribution of profits

In the context of business law, distribution of profits is the dispensing of the profits amongst partners of partnership, members of a Limited Liability Company, or employees in a company, as per the terms outlined in a profit-sharing...

divestiture

Divestiture is the partial or full disposal of an asset by a company or government entity through sale, exchange, closure, or bankruptcy. Divestiture can either be voluntary or court ordered. Examples of divestitures include selling...

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