business organizations


In general, someone who owes an obligation to someone else. Most commonly, an obligation to pay money. In specific contexts:

1. In bankruptcy law, someone who files a voluntary bankruptcy petition, or against whom an involuntary bankruptcy...

Debtor and Creditor

debtor and creditor: an overview

Debtor-creditor law governs situations where one party is unable to pay a monetary debt to another. There are three types of creditors. First are those who have a lien against a particular piece of property. This...

Depreciable Asset

A type of physical asset that is capable of depreciation treatment. It is generally an asset used for generating income or profit and has the useful life of more than a year and gradually reduces in value over time.

Derivative Action


See: Shareholder Derivative Suit.


Definition from Nolo’s Plain-English Law DictionaryThe transfer of rights, powers, or an office (public or private) from one person or government to another.

Definition provided by Nolo’s Plain-English Law Dictionary.



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

Disregarding the Corporate Entity


See Piercing the corporate veil



A fundamental change of the relations among partners in a partnership, ending a governance-type relation among the partners in the partnership. As part of dissolution, liquidation of the partnership's assets occurs.

See alsoDissolution of...

Dissolution of Corporation


The ending of a corporation, either voluntarily by filing a notice of dissolution with the Secretary of State or as ordered by a court after a vote of the shareholders, or involuntarily through government action as a result of failure to pay...

Distribution of Profits


The dispensing of profits amongst partners of a partnership, members of a Limited Liability Company, or employees in a company, as per terms outlined in a profit-sharing agreement.

See alsoPartnershipLimited Liability Company