trust fund doctrine

noun

: a doctrine holding that shareholders to whom assets of an insolvent corporation have been transferred are liable to creditors upon dissolution of the corporation
broadly : a doctrine holding that corporate assets are held as a trust fund for the benefit of shareholders and creditors and that corporate officers have a fiduciary duty to deal with them properly

Keep scrolling for more

Dictionary Entries Near trust fund doctrine

Cite this Entry

“Trust fund doctrine.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/trust%20fund%20doctrine. Accessed 27 Sep. 2022.

Keep scrolling for more

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!


Commonly Confused Words Quiz

  • vector image of a face with thought expression
  • I went to the ______ store to buy a birthday card.
How Strong Is Your Vocabulary?

Test your vocabulary with our 10-question quiz!

TAKE THE QUIZ
Universal Daily Crossword

A daily challenge for crossword fanatics.

TAKE THE QUIZ