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The process of legally declaring a corporate entity as separate from its owners. Case law: Salomon v. Salomon & Co. Ltd [1897] AC 22.

Protection for company shareholders where their financial liability is limited to the amount they invested in the company. Case law: Macaura v. Northern Assurance Co. Ltd [1925] AC 619

A legal decision to treat the rights or liabilities of its shareholders or directors as the rights or liabilities of the corporation. Case law: Prest v Petrodel Resources Ltd [2013] 2 AC 415.

A person or group of people who undertake the preliminary steps to create a company. Case law: Twycross v Grant (1877) 2 CPD 469.

A legal document specifying the constitution and aims of the company, including the scope of its operations outside the company. Historical significance as it used to be the primary constitutional document. Case law: Ashbury Railway Carriage and Iron Company Ltd v Riche (1875) LR 7 HL 653.

A document that specifies the regulations for a company's operations and defines the company's purpose. Case law: Hickman v Kent or Romney Marsh Sheep-Breeders Association [1915] 1 Ch 881.

Acts conducted outside the powers or authority granted by the company’s constitutional documents. Case law: Ashbury Railway Carriage and Iron Company Ltd v Riche.

Units of ownership interest in a corporation that entitle the shareholder to a proportion of the corporation's assets and profits. Case law: Borland's Trustee v Steel Bros & Co Ltd [1901] 1 Ch 279.

An individual or institution that legally owns one or more shares of the stock in a public or private corporation. Case law: Foss v Harbottle (1843) 2 Hare 461.

A person elected by shareholders to manage the company and act on their behalf. Case law: Re City Equitable Fire Insurance Co [1925] Ch 407 (Reid's Duties of Directors).

A long-term security yielding a fixed rate of interest, issued by a company and secured against assets. Case law: Levy v Abercorris Slate and Slab Co. (1887) 37 Ch D 260.

A portion of a company's earnings distributed to its shareholders. Case law: Lee v Neuchatel Asphalte Co Ltd [1889] 41 ChD 1.

A legal duty to act solely in another party's interests. In company law, directors have this duty to the company. Case law: Percival v Wright [1902] 2 Ch 421.

The inability of a company to pay its debts as they fall due. Case law: Re Cheyne Finance plc (in receivership) [2007] EWHC 2402.

The process of settling accounts and liquidating assets in anticipation of a company’s closure. Case law: Re Pritchard & Co Ltd [1963] 1 WLR 997.

A type of corporate bankruptcy in which a receiver is appointed by creditors to run the company. Case law: Belmont Finance Corporation Ltd v Williams Furniture Ltd [1979] Ch 250.

The authority to vote on someone else's behalf, commonly used by shareholders to vote at a company's annual general meetings. Case law: Bushell v Faith [1970] AC 1099.

Legal mechanisms in place to protect the interests of minority shareholders within a company. Case law: O'Neill v Phillips [1999] 1 WLR 1092.

A mandatory yearly gathering of a company's interested shareholders to discuss the company's direction and their interests. Case law: Automatic Self-Cleansing Filter Syndicate Co. Ltd. v Cunninghame [1906] 2 Ch 34.

Rights given to existing shareholders to buy new shares before they are offered to the public to avoid dilution of their ownership. Case law: Re R. A. Noble & Sons (Clothing) Ltd [1983] BCLC 273.

The consolidation of assets and liabilities under one entity, often to grow a company. Case law: Adams v Cape Industries plc [1990] Ch 433.

A lawsuit brought by a shareholder on behalf of the corporation against a third party. Case law: Foss v Harbottle.

The judicial act of subordinating the interests of a creditor to those of others, typically in instances of misconduct. Case law: Bank of Cyprus UK Ltd v Menelaou [2015] UKSC 66.

A legal strategy to protect minority shareholders from unfair treatment by majority shareholders or directors. Case law: Scottish Co-operative Wholesale Society Ltd v Meyer [1959] AC 324.

A principle that prohibits directors or officers from taking business opportunities for themselves that could benefit the company. Case law: Industrial Development Consultants v Cooley [1972] 2 WLR 443.

The responsibility of a director or officer to act with the care of a reasonably prudent person in similar circumstances. Case law: Re City Equitable Fire Insurance Co.

The legal obligation of company directors to avoid conflict between personal interests and the interests of the company. Case law: Aberdeen Railway Co v Blaikie Brothers (1854) 1 Macq HL 461.

A criminal offense which occurs when a company's activities are managed or organized in a way leading to a person's death. Case law: R v Cotswold Geotechnical Holdings Ltd [2011] EWCA Crim 2797.

A commercial enterprise undertaken jointly by two or more parties that share both profits and risks. Case law: Panatown Ltd v McAlpine Construction Ltd [2001] 1 AC 518.

A technically detailed review by a third party, typically an accounting firm, summarizing the fairness and material accuracy of a company's financial statements. Case law: Caparo Industries plc v Dickman [1990] 2 AC 605.

A collection of company law principles that prohibit a company from returning its capital to shareholders, thereby ensuring creditors are not disadvantaged. Case law: Trevor v Whitworth (1887) 12 App Cas 409.

The official address of a company to which all communications and notices may be addressed. Case law: Prest v Petrodel Resources Ltd.

A legal document relating to the formation of a company or corporation. Case law: Moorgate Mercantile Co Ltd v Twitchings [1976] AC 890.

A person who is not formally appointed as a director but in accordance with whose directions or instructions the directors are accustomed to act. Case law: Secretary of State for Trade and Industry v Tjolle [1998] 1 BCLC 333.

The system of rules, practices, and processes by which a firm is directed and controlled. Case law: Re Barings plc (No 5) [1999] 1 BCLC 433.

A situation where majority shareholders pressure minority shareholders into selling their shares. Case law: Re Bugle Press Ltd [1961] Ch 270.

Preferences and rights given to shareholders that hold a class of shares different from the common stock. Case law: Greenhalgh v Arderne Cinemas Ltd [1951] Ch 286.

A creditor that has the benefit of a security interest over some or all of the assets of the debtor. Case law: Re Spectrum Plus Limited [2005] UKHL 41.

A creditor that does not have a charge or other rights over assets of the debtor company. Case law: Re Max Factor & Co [1971] Ch 32.

A formal legal document required by and filed with the relevant government financial securities regulator that provides details about an investment offering for sale. Case law: Re Smith and Fawcett Ltd [1942] Ch 304.

A security interest over a fund of changing assets of a company that 'floats' until some event occurs and 'crystallizes' into a fixed charge. Case law: Re Yorkshire Woolcombers Association Ltd [1903] 2 Ch 284.

The process by which the ownership of a stock moves from one party to another, either by sale or gift. Case law: Erlanger v New Sombrero Phosphate Co (1878) 3 App Cas 1218.

The process initiated by the directors of a solvent company to dissolve the company’s structure and distribute its assets. Case law: Re Borax Consolidated Ltd [1999] 2 BCLC 123.

A class of shares that entitles the holder to a fixed dividend ahead of the company's common shares and to a fixed share of assets on winding up. Case law: Euro Brokers Holdings Ltd v Monecor (London) Ltd [2004] BCC 746.

The total amount of shareholder's equity that has been funded by shareholders' payments, excluding undistributed profits. Case law: Re Exchange Banking Co, Flitcroft's Case (1882) 21 ChD 519.

Funds raised by issuing shares in return for cash or other considerations. Case law: Parke v Daily News Ltd [1962] Ch 927.

Shares that can be bought back by the company at a future date at pre-determined prices. Case law: Re Saltdean Estate Co Ltd [1968] 1 WLR 461.

An intangible asset that arises when a buyer acquires an existing business, representing the reputation, customer relations, or other similar non-physical assets that can't be separated from the business entity. Case law: Trego v Hunt [1896] AC 7.

The distribution of additional shares to existing shareholders at no extra cost, based on the number of shares a shareholder owns. Case law: Re Duomatic Ltd [1969] 2 Ch 365.