DISTRIBUTION

distribution,n.1. The passing of personal property to an intestate decedent’s heirs; specif., the

process of dividing an estate after realizing its movable assets and paying out of them its debts and

other  claims  against  the  estate.  Cf.  DESCENT(1).  [Cases:  Descent  and  Distribution    71;

Executors  and  Administrators    288–318.  C.J.S.  Descent  and  Distribution  §  82;  Executors  and

Administrators§§ 533–583.] 2. The act or process of apportioning or giving out. — distribute,vb.

controlled-securities-offering distribution.See securities-offering distribution (1).

corporate distribution.A corporation’s direct or indirect transfer of money or other property, or

incurring of indebtedness to or for the benefit of its shareholders, such as a dividend payment out

of current or past earnings. [Cases: Corporations    155(1). C.J.S. Corporations § 300.]

liquidating distribution.A distribution of trade or business assets by a dissolving corporation

or  partnership.  —  Also  termed  distribution  in  liquidation.  [Cases:  Corporations    629.  C.J.S.

Corporations §§ 875–878.]

nonliquidating distribution.A distribution of assets by a corporation or partnership that is not

going out of business, such as a distribution of excess capital not necessary for current operations.

partnership  distribution.A  partnership’s  payment  of  cash  or  property  to  a  partner  out  of

earnings or as an advance against future earnings, or a payment of the partners’ capital in partial or

complete liquidation of the partner’s interest. [Cases: Partnership    232. C.J.S. Partnership § 230.]

probate  distribution.The  judicially  supervised  apportionment  and  division  —  usu.  after  the

payment  of  debts  and  charges  —  of  assets  of  an  estate  among  those  legally  entitled  to  share.

[Cases:  Executors  and  Administrators    288–318.  C.J.S.  Executors  and  Administrators  §§

533–583.]

secondary distribution. 1. The public sale of a large block of previously issued stock. — Also

termed secondary offering. See OFFERING. 2. The sale of a large block of stock after the close of

the exchange.

securities-offering  distribution.  1.  An  issuer’s  public  offering  of  securities through  a  formal

underwriting  agreement  with  a  broker-dealer.  —  Also  termed  controlled-securities-offering

distribution.  2.  An  issuer’s  public  offering  of  securities  on  an  informal  basis,  with  or  without

brokers.   —   Also   termed   uncontrolled-securities-offering   distribution.   [Cases:   Securities

Regulation    11.10–11.50. C.J.S. Securities Regulation §§ 8, 35–49, 63, 69–72.]

trust  distribution.The  cash  or  other  property  paid  or  credited  to  a  trust  beneficiary.  [Cases:

Trusts    270–288.]

uncontrolled-securities-offering distribution.See securities-offering distribution (2). [Blacks Law 8th]