Equity (Judiciary) - Explained
What is the Court's Power of Equity?
Written by Jason Gordon
Updated at April 2nd, 2023
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What is a Court's Power of Equity?
Equity can mean the following: 1) Fairness (legal context), or 2) Ownership interest (business context). Article III Courts in the United States are vested with the power of law and equity. The power of equity allows the court to do what is right when the law does not provide an adequate remedy. In the business context, equity simply refers to an ownership interest in a business.
How Does the Power of Equity Work?
Owners refers to an owners interest in the company. In accounting parlance, owners equity can be measured by deducting total liabilities from the total assets. Owners Equity is listed on the right side of balance sheet below the liability section. The phrase equity interest (also called stockholders equity) refers to a stockholders portion percentage of ownership of the firm. Equity ownership represents the lowest priority of claim over the assets of company. In case of company liquidation, equity holders are paid at the last after creditors claims are met.
Types of Equity
Types of equity may include percentage ownership of a partnership, membership interest or units of a limited liability company, or shares of a corporation. Within these, equity (particularly preferred equity) can take on any number of characteristics. It can provide for payment preferences, access to information, voting rights, approval rights, etc.
Related Topics
- US Courts (Intro)
- What is the Authority for Article III Courts?
- What is the Authority for Article I Courts?
- What is the authority for courts under Article II?
- What is the authority for Article IV Territorial Courts?
- What is the authority for State Courts?
- What are Article III Courts?
- What are Article I Administrative Courts?
- What are Article IV Territorial Courts?
- What are state courts?
- What is Subject-Matter Jurisdiction?
- What is Federal Court Subject-Matter Jurisdiction?
- What is State Court Subject-Matter Jurisdiction?
- Can a Federal trial courts hear state matters & vice versa?
- Can a Federal appellate court hear federal matters & vice versa?
- What is Personal Jurisdiction?
- How to establish Federal Court Personal Jurisdiction?
- How to establish State Court Personal Jurisdiction?
- What is a Long-Arm Statute?
- Who are the primary players in the state judicial system?
- What types of judges are part of the judiciary?
- What are the duties of trial judges in the legal system?
- Contempt of Court
- Declaratory Judgment
- Equitable Relief
- Equity - Definition
- What are the duties of Appellate Judges & Justices?
- De Novo Review
- What is the role of jurors in the judicial system?
- What number of jurors and juror votes are required for guilt or liability?
- What do Attorneys do?
- Who are the other players in the judicial system?
- US Circuit Court?
- US Supreme Court?
- Appeals from Legislative and Administrative Courts
- Appeals in the state court system?