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
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See: agent for service of process
[Last updated in March of 2022 by the Wex Definitions Team]
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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...
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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,...
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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...
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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...
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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...
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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...
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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...
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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...