Glossary of most frequent business formation terms

A B C D E F G H I J L M N O P Q R S T U V W

-U-

Ultra Vires

Unanimous Written Consent

Underwriter

 

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Ultra Vires

The common law doctrine relating to the effect of corporate acts that exceed the powers or the stated purposes of a corporation. Traditionally, if a corporation acted beyond its stated purposes, the actions were unenforceable against the corporation. However, most modern statutes allow corporate purposes to be any lawful activity.

 

Unanimous Written Consent

Nearly in all states it is allowed for directors and shareholders to act without a meeting if they each give their consent to specific corporate actions in writing.

 

Underwriter

A company, usually an investment bank that purchases shares of a corporation and resells it to investors. In general, an intermediary that guarantees the proceeds to the firm from a security sale, thereby in effect taking ownership of the securities.