Legal Dictionary of Pakistan

Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.

Authorized shares

see capital stock (1) under stock.

Share

ub. 1. To divide (something) into portions. 2. To enjoy or partake of (a power, right, etc.).

Sharecropping

An agricultural arrangement in which a landowner leases land and equipment to a tenant who, in turn, gives the landlord a portion of the crop as rent. - sharecropper, n. shared-appreciation mortgage See MORTGAGE.

Shareholder

One who owns or holds a share or shares in a company, esp. a corporation. - Also termed shareowner; (in a corporation) stockholder.

Shareowner

See SHAREHOLDER.

bonus share

See bonus stock under STOCK.

cash flow per common share

The cash flow from operations minus preferred stock dividends, divided by the number of outstanding common shares.

controlling shareholder

A shareholder who is in a position to influence the corporation's activities because the shareholder either owns a majority of outstanding shares or owns a smaller percentage but a significant number of the remaining shares are widely distributed among many others.

cumulative preference share

See cumulative preferred stock under STOCK. cumulative preferred stock See STOCK.

discount share.

See discount stock under STOCK.

distributive share

1. The share that an heir or beneficiary receives from the legal distribution of an estate. 2. The portion (as determined in the partnership agreement) of a partnership's income, gain, loss, or deduction that is passed through to a partner and reported on the partner's tax return. 3. The share of assets or liabilities that a partner or partner's estate acquires after the partnership has been dissolved.

dummy shareholder

A shareholder who owns stock in name only for the benefit of the true owner, whose identity is usu. concealed.

earnings per share

Corporations. A measure of corporate value by which the corporation's net income is divided by the number of outstanding shares of common stock. ( Investors benefit from calculating a corporation's earnings per share, because it helps the investor determine the fair market value of the corporation's stock. - Abbr. EPS.

elective share

Wills & estates. The percentage of a deceased spouse's estate, set by statute, that a surviving spouse (or sometimes a child) may choose to receive instead of taking under a will or in the event of being unjustifiably disinherited. - Also termed forced share; statutory share; statutory forced share. See RIGHT OF ELECTION. "In many states today, common-law dower and curtesy have been wholly replaced by statutes that make the surviving spouse an 'heir' of the deceased spouse and fix a minimum percentage of the decedent's estate (real and personal) to which the survivor will

equal-shares clause

Insurance. A clause requiring an insurer to pay its proportionate share of a claimed loss.

forced share

See ELECTIVE SHARE.

founder's share.

In England, a share issued to the founder of a company as a part of the consideration for the business. ( Now rare, a founder's share participates in profits only if the dividend on ordinary shares has been paid to a specified amount.

fully diluted earnings per share

A corporation's net income - assuming that all convertible securities had been transferred to common equity and all stock options had been exercised - divided by the number of shares of the corporation's outstanding common stock.

fully diluted earnings per share.

See EARN. INGS PER SHARE.

majority shareholder

A shareholder who owns or controls more than half the corporation's stock.

market share

The percentage of the market for a product that a firm supplies, usu. calculated by dividing the firm's output by the total market output. ( In antitrust law, market share is used to measure a firm's market power, and if the share is high enough - generally 70% or more - then the firm may be guilty of monopolization. See MONOPOLIZATION. Cf. MARKET POWER.

market-share liability

Liability that is imposed, usu. severally, on each member of an industry, based on each member's share of the market, or respective percentage of the product that is placed on the market. a This theory of liability usu. applies only in the situation in which a plaintiff cannot trace the harmful exposure to a particular product, as when several products contain a fungible substance. For example, it is sometimes applied to a claim that the plaintiff was harmed by exposure to asbestos. See enterprise liability.

market-share theory

Antitrust. A method of determining damages for lost profits by calculating the impact of the defendant's violation on the plaintiff's output or market share. Cf. BEFORE-AND-AFTER THEORY; YARDSTICK THEORY.

minority shareholder

A shareholder who owns less than half the total shares outstanding and thus cannot control the corporation's management or singlehandedly elect directors. shareholder-control agreement See POOLING AGREEMENT.

nonshareholder constituency

A group of nonstockholders, such as employees or the public, who have an interest in the corporation's business - an interest that the corporation may legally consider, in addition to shareholders' interests, in making major policy decisions. - Also termed alternative constituency.

ordinary shares

See common stock under STOCK.

performance shares

Stock given to an executive when the corporation meets a performance objective.

preference shares

See preferred stock under STOCK.

qualifying share.

A share of common stock purchased by someone in order to become a director of a corporation that requires its directors to be shareholders. See SHARE (2).

share account

See share-draft account under ACCOUNT.

share acquisition

The acquisition of a corporation by purchasing all or most of its outstanding shares directly from the shareholders; TAKEOVER. - Also termed share-acquisition transaction; stock acquisition; stock-acquisition transaction. Cf. ASSET ACQUISITION.

share and share alike

To divide (assets, etc.) in equal shares or proportions; to engage in per capita division. See PER CAPITA.

share certificate

See STOCK CERTIFICATE.

share draft

See DRAFT.

share split

See STOCK SPLIT.

share-draft account

See ACCOUNT.

share-drat account

An account that a member maintains at a credit union and that can be drawn on through the use of share drafts payable to third parties. 0 A sharedraft account operates much like a checking account operates at a bank. - Also termed share account.

share-warrant to bearer

A warrant providing that the bearer is entitled to a certain amount of fully paid stock shares. ( Delivery of the warrant operates as a transfer of the shares of stock.

shared custody

See joint custody.

shared custody.

See joint custody under CUSTODY (2)

shared-appreciation mortgage

A mortgage giving the lender the right to recover (as contingent interest) an agreed percentage of the property's appreciation in value when itis sold or at some other specified, future date. - Abbr. SAM.

shared-equity mortgage

See MORTGAGE,

shareholder derivative suit

See DERIVATIVE ACTION (1).

shareholder oppression

See OPPRESSION (4).

shareholder proposal

A proposal by one or more corporate stockholders to change company policy or procedure. ( Ordinarily, the corporation informs all stockholders about the proposal before the next shareholder meeting.

shareholder resolution

A resolution by shareholders, usu. to ratify the actions of the board of directors. 3. A document containing such an expression or authorization.

shareholder voting agreement

See POOLING AGREEMENT.

shareholder's liability

1 The statutory, added, or double liability of a shareholder for a corporation's debts, despite full payment for the stock. 2. The liability of a shareholder for any unpaid stock listed as fully owned on the stock certificate, usu. occurring either when the shareholder agrees to pay full par value for the stock and obtains the certificate before the stock is paid for, or when partially paid-for stock is intentionally issued by a corporation as fully paid, the consideration for it being entirely fictitious. - Also termed stockholder's liability.

shareholders' equity

See OWNERS' EQUITY.

shares outstanding

See outstanding stock under STOCK.