Michigan Business Law Glossary
Acquisition - The purchase of one company by another, through either the purchase of its assets, or the purchase of its shares.
Bankruptcy - A legal proceeding in which a business or individual is relieved of paying certain debts.
Bylaws - The internal operating rules of a business usually set out in a five to twenty page document. Bylaws govern such matters as holding elections, meetings, quorums, voting, and the powers of directors and officers.
Domestic Corporation - Generally, a corporation whose articles of incorporation are filed in the state in which it maintains and operates its principal office.
Equal Employment Opportunity Commission - A law enforced by the federal administrative agency that prohibits employment discrimination.
Foreign Corporation - A corporation that is incorporated under the laws of a different nation or state. This type of corporation must file a notice of doing business in any state in which it does regular business substaintially.
Franchise Tax - A tax levied in consideration for the privilege of either qualifying or incorporating to do business in a particular state. A franchise tax may be based upon income, outstanding shares, assets, or a combination.
Limited Liability - The maximum amount an individual participating in a company can lose or be charged in case of claims against the business or its bankruptcy. A corporation stockholder can only lose his/her investment.
Limited Liability Company - A flexible and new company organization that offers the benefits of liability protection with the simplicity of a partnership.
Limited Partnership - A special type of partnership which is very common when individuals are in need of funds for a company, or when putting together an investment in a real estate development.
Areas of Practice
