Corporations Flashcards
What is a Promoter?
a person who brings the company into existence
Promoters are crucial in the formation of a company, handling initial business arrangements and securing capital.
What does Novation refer to?
replacing an obligation to perform with a new obligation
Novation is often used in contracts to transfer obligations from one party to another.
What is the role of the Secretary of State?
a position in government that manages the state’s affairs
The Secretary of State often oversees various governmental functions, including business registrations.
What does De Facto mean?
in fact or in effect
De Facto is used to describe something that exists in reality, even if not officially recognized.
What is meant by Veil in a legal context?
a shield or cover
The term ‘veil’ often refers to the corporate veil, which protects shareholders from personal liability.
What is Par Value?
the stated or face value
Par value is typically used in the context of stocks and bonds, representing the nominal value.
What does Unanimous mean?
fully in agreement
A unanimous decision is one where all parties involved agree without dissent.
What is a Proxy?
an agent or substitute authorized to act for another
Proxies are commonly used in corporate settings for voting purposes.
What is a Derivative Suit?
a lawsuit brought by a shareholder on behalf of the corporation
This type of lawsuit is typically used to address wrongs against the corporation that the corporation itself fails to rectify.
What does Futility refer to?
uselessness of an act or gesture
In legal contexts, an act may be deemed futile if it does not achieve its intended purpose.
Who is a Looter?
someone who indiscriminately robs or steals assets
Looting often occurs during chaotic situations, such as riots or natural disasters.
What does it mean to Usurp?
to illegally encroach upon another’s rights or take another’s place
Usurpation can involve taking control of a position or rights without legitimate authority.
What is Insulation in a legal context?
the protection provided by an added layer
Insulation can refer to legal protections that shield individuals or entities from liability.
What is an Appraisal?
a determination of value
Appraisals are often used in real estate and business to assess the worth of an asset.
What are Preemptive rights?
the rights of a shareholder to maintain their proportionate share of ownership
Preemptive rights allow existing shareholders to purchase additional shares before the company offers them to new investors.
