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LSDefine
Simple English definitions for legal terms
divestiture
Read a random definition: correi stipulandi
A quick definition of divestiture:
Divestiture means getting rid of something that belongs to a company or government. This can happen when they sell it, close it down, or go bankrupt. Sometimes they do it on purpose, and sometimes a court tells them they have to. For example, a company might sell the rights to something they invented, or two companies might join together and sell off some parts they don't need anymore. In some legal situations, divestiture means that someone in charge did something wrong and can't be trusted anymore.
A more thorough explanation:
Divestiture is when a company or government entity gets rid of an asset, either partially or completely. This can happen through selling, exchanging, closing, or bankruptcy. It can be voluntary or court-ordered.
Examples of divestitures include:
- Selling intellectual property rights
- Corporate acquisitions and mergers
One example of divestiture in a legal sense is when a court's jurisdiction in a bankruptcy matter is affected. When an appeal is filed, the lower court loses control over the issue or matter that is being appealed.
Another example is in military law, where divestiture defense means that if a superior behaves improperly towards a subordinate, they lose their authority and protection.
These examples illustrate how divestiture can happen in different contexts and for different reasons. It is a way for companies and governments to get rid of assets that are no longer useful or profitable, or to comply with legal requirements.