Profit Distribution
/ˈprɒfɪt ˌdɪstrɪˈbjuːʃən/
Definitions
- (n.) The allocation or sharing of net earnings or gains among stakeholders, partners, or shareholders according to agreed terms or legal requirements.
The partnership agreement specifies the profit distribution among the partners at the end of each fiscal year.
Forms
- profit distribution
- profit distributions
Related terms
See also
Commentary
Profit distribution clauses must be carefully drafted to reflect the parties' intent and comply with applicable laws regarding corporate and partnership profits.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.