Section 112: Overview, definition, and example
What is Section 112?
Section 112 refers to a specific section in a legal document, regulation, or statute that outlines particular provisions, rules, or guidelines. It is part of a larger body of legal text, such as a law, contract, or corporate regulation, and it addresses a specific issue or set of related issues within the broader framework. The exact content of Section 112 varies depending on the context, but it is generally numbered for easy reference and is designed to clarify, regulate, or enforce particular legal obligations or actions within the context of the document.
For example, in tax law, Section 112 might refer to the rules governing capital gains, while in a company’s bylaws, it could define specific voting rights or corporate governance requirements.
Why is Section 112 important?
Section 112 is important because it provides clarity and legal guidance on specific matters within a broader legal framework. It allows individuals, businesses, and organizations to understand their rights, responsibilities, or limitations within that particular section. By referencing Section 112, parties can pinpoint specific legal obligations or procedures that apply to their situation, ensuring compliance with the law or agreement. In the case of legal or regulatory documents, Section 112 serves to regulate conduct, clarify complex issues, and provide necessary legal protections.
For businesses, understanding Section 112 can help them navigate compliance requirements and avoid legal pitfalls. For individuals, it ensures that they are aware of specific legal conditions or rights they may have under the law or a contract.
Understanding Section 112 through an example
Imagine a corporation that is reviewing its bylaws. Section 112 of the bylaws defines the voting rights of shareholders and outlines how voting must occur in the event of a corporate decision, such as the election of new board members. This section provides clear guidelines on who is eligible to vote, how votes are counted, and the procedures to follow during a shareholder meeting.
In another example, a tax consultant is helping a client understand their capital gains tax obligations. The consultant refers to Section 112 of the tax code, which outlines how long-term capital gains should be taxed and any available exemptions. This helps the client better understand their potential tax liabilities and plan accordingly.
An example of a Section 112 clause
Here’s how a Section 112 clause might appear in a legal document, such as a corporate bylaws or legal statute:
“Section 112. Voting Rights. Each shareholder shall be entitled to one vote per share owned on all matters submitted to the shareholders for approval. In the event of a tie vote, the Chairman shall cast the deciding vote. Voting may be conducted by proxy, and all proxy submissions must be submitted in writing prior to the shareholder meeting.”
Conclusion
Section 112 is a specific part of a legal document that addresses a particular issue or set of issues, providing detailed guidance and regulations to ensure clarity and compliance. Whether found in tax laws, corporate governance documents, or other types of contracts, Section 112 helps define the rules and expectations for individuals, businesses, and organizations. Understanding the content of Section 112 is crucial for navigating legal obligations and ensuring compliance with specific provisions.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.