Legal Definitions - distribute

To distribute, in a legal context, means to systematically divide, allocate, or hand out assets, responsibilities, or other items among multiple individuals or entities. This often involves a formal process to ensure fair and proper apportionment, particularly in areas like estate administration, business operations, or legal settlements.

Here are some examples to illustrate this concept:

• Example 1: Estate Administration

  After a person passes away, their will specifies that their property, bank accounts, and personal belongings should be divided among their three children and a local charity. The executor of the estate is responsible for gathering all these assets and then distributing them to the named beneficiaries according to the instructions in the will. This ensures each child and the charity receives their rightful share as intended by the deceased.

• Example 2: Corporate Dividends

  A publicly traded company announces that it has had a profitable quarter and will issue a dividend to its shareholders. The company will distribute a portion of its earnings to all individuals and entities that own shares in the company. Each shareholder will receive a payment proportional to the number of shares they hold, representing their share of the company's profits.

• Example 3: Legal Settlement Funds

  In a large class-action lawsuit, a court approves a settlement fund of several million dollars to compensate thousands of consumers who were harmed by a faulty product. A claims administrator is appointed to manage the process of distributing this fund. They will review each claim, verify eligibility, and then allocate portions of the total settlement amount to each approved claimant based on a pre-determined formula that accounts for the extent of their damages.