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A corporation is a legal entity created and recognized by state law. It can consist of one or two persons identified under a common name. Shareholder and corporations are liable. Corporate shareholders normally are not personally liable for the obligations of the corporation beyond the extent of their investments. Profits that are not distributed are retained by the corporation. These retained earnings if invested properly, will yield higher corporate profits in the future. Corporation may be held liable for criminal acts of its agents and employees, provided the punishment is one that can be applied to the An Essay on Paper Products Corporation, corporation can be fined. Corporate lawbreakers can face fines smaller amounting or to hundreds of millions of dollars.
Corporate sentencing guidelines require corporations to train employees on how to comply with relevant laws. An Essay on Paper Products Corporation some instances, the corporation must obtain a certificate of authority in any state which plans to do business. But the foreign corporation does not need this certificate to sell goods over the internet. A public corporation is not the same as a publicly held corporation. Pre algebra lexicon online publicly held corporation is any corporation whose shares are publicly An Essay on Paper Products Corporation in a securities market, such as the New York Stock Exchange or over the counter market.
Most corporations are private although they may serve a public purpose. Nonprofit corporation Corporation formed for purposes other making a profit are called nonprofit or not-for-profit corporations. Private hospitals, Marxist Econ Analysis Essay institutions, charities, and religious organizations for example, are organized An Essay on Paper Products Corporation nonprofit organization.
Close corporations A close corporations is one whose shares are held by members An Essay on Paper Products Corporation a family An Essay on Paper Products Corporation by relatively few persons. Referred also as closely held, family, or privately held corporations. A close corporation is often operated like a partnership. Control of a close corporation can also be established through the use of shareholder agreement. S corporations An Essay on Paper Products Corporation close corporation that meets the qualifying requirements specified in subchapter S of the Internal Revenue Code can operate as an An Essay on Paper Products Corporation corporation.
If a corporation has a S corporation status, it can avoid the imposition of income taxes at the corporate level while retaining many of the advantages of a corporation, particularly limited liability. Professional corporation Professional corporation such as physician, lawyers, dentists, and accountants can incorporate. There is generally no limitation An Essay on Paper Products Corporation liability for acts of malpractice An Essay on Paper Products Corporation obligations incurred because of a breach of duty to a client of a PC.
In many states, professional persons are liable not only for their own negligent acts, but also for Custom Essay Order Review - Gcse misconduct of persons under their direct supervision who render professional services. A shareholder in a professional corporation is generally protected from contractual liability and cannot be Sheet Ritu Poem In Hindi | Updated liable for the torts that are committed by other professional at the firm. One of the most common reasons for creating a corporation is the need for additional capital to finance expansion.
Incorporation may be the An Essay on Paper Products Corporation choice for an expanding business organization because a corporation can obtain more capital by issuing shares to stock. It is important for businesspersons to understand that they are personally liable for all preincorporation contracts made investor, accountants, or others on behalf of the future corporation. Selecting the state of incorporation Because laws differ from state to state. States fees are considered too. Securing the corporate name The choice of a corporate name is subject to state approval to ensure against duplication or deception.
All the states require the corporation name to include the word corporation Corp. Preparing the articles upselling and cross selling skills presentation incorporation The primary document needed to incorporate a business is the articles of An Essay on Paper Products Corporation, must include the following information; 1 The name of the corporation.
A company might state that the aggregate number of shares that An Essay on Paper Products Corporation corporation has the authority to issue is 5k. The owners may want to prescribe a maximum duration, however, after which the corporation must formally renew its existence. A corporation can be formed for any lawful purpose. Filing the articles with the State Once An Essay on Paper Products Corporation articles of incorporation have been prepared and signed by the incorporators, they are An Essay on Paper Products Corporation to the appropriate state official, usually the An Essay on Paper Products Corporation of State. If they are not allowed precisely, others may be able to challenge the existence of the corporation.
When the corporation seeks to enforce a contract An Essay on Paper Products Corporation a defaulting party that party may be able to avoid liability on the ground of a defect in An Essay on Paper Products Corporation incorporation procedure. De Jure and De Facto corporations If a corporation has substantially complied with all conditions precedent to incorporation, a corporation is An Essay on Paper Products Corporation to have de jure existence. Because a de jure corporation is one that is properly formed, neither the state nor third party can An Essay on Paper Products Corporation its existence. Sometimes, there is a defect in complying with statutory mandates, An Essay on Paper Products Corporation these circumstances the corporation may have de facto status, meaning that it will be treated as a legal corporation despite the defect in its formation.
The following elements are required for de facto status. Corporation by Estoppel If a business holds itself out to others as being a corporation but has made no attempt to incorporate, the firm normally will be An Essay on Paper Products Corporation from denying corporate status lawsuit by a third party. When justice An Essay on Paper Products Corporation, the courts treat an alleged corporation as if it were an actual corporation for the purpose of determining An Essay on Paper Products Corporation rights and liabilities in particular circumstances. A corporation by estoppels is thus determined by the situation.
When a corporation is created, the express and implied powers necessary to achieve its purpose also come into existence. The following order of priority is used if a conflict arises among the various documents involving a corporation; 1 U. To borrow funds, the corporation acts through its board of directors to authorize the loan. Most cases dealing with ultra vires acts have involved contracts made An Essay on Paper Products Corporation unauthorized purposes.
In some states, when a contract is entirely executor, either party can use a defense of ultra vires to prevent contract enforcement. Occasionally, the owners use a corporate entity to perpetrate a An Essay on Paper Products Corporation, circumvent the 1984 - College Essays - Kelse97 - Term, or in some other way accomplish an illegitimate objective.
In these situations, the court will ignore the corporate structure and pierce the corporate veil. The following are some of the factors Whats the fastest way to learn a new language? frequently cause An Essay on Paper Products Corporation the courts to What is a reaction paper - Answers.com the corporate veil; 1 A party is tricked into a dealing.
Not enough money when it formed. In such a situation, the separate status of the corporate entity and the shareholder must be carefully preserved. Any transaction has to be made in a good faith and An Essay on Paper Products Corporation fair value. Directors have responsibility for all policymaking decisions necessary to the management of all corporate affairs. Just as shareholders cannot act individually to bind the corporation, the directors must act as a body in An Essay on Paper Products Corporation out routine corporate business. The board selects and removes the corporate officers.
Election of directors Can be less than three, directors An Essay on Paper Products Corporation elected by a majority vote of the shareholders. An Essay on Paper Products Corporation of directors Director usually are compensated for time, effort, etc. In many corporations directors are also chief corporate officers and receive compensation in their managerial positions. Board of directors meetings The board of directors conducts business by holding formal meetings with recorded minutes. The date of regular meetings An Essay on Paper Products Corporation usually established in the articles or by board resolution. Rights An Essay on Paper Products Corporation directors A corporate director must have rights to function properly in that position.
The board members often elect an executive committee of directors An Essay on Paper Products Corporation handle the interium management decisions between board of directors meetings. Is responsible for the selection, compensation, and oversight of the independent public accountants An Essay on Paper Products Corporation audit the corporations financial records. This one chooses the candidates for An Essay on Paper Products Corporation board of directors that management wishes to submit to the shareholders in the next election.
Reviews and decides the salaries, bonuses, stock options and other benefits. Decides whether the corporation should pursue requests by case study on bangladesh population to file a lawsuit against some party that has allegedly harmed the corporation. Duty of care Directors and officers must exercise due care in performing their duties, they need to act in a good faith. If directors and officers failed to exercise An Essay on Paper Products Corporation care results in harm to the corporation can be held liable for negligence.
Unless a dissent is entered in the minutes, the director is presumed to have assented. Dissenting directors are rarely held individually liable to the corporation. Under the business judgment rule, a corporate director or officer will not be liable to the corporation or to its shareholders mistakes of judgment and An Essay on Paper Products Corporation business decisions. Typically involve; 1 Competing with the corporation. Conflicts of interest Corporate directors often have many business affiliations, and a director may sit on the board of more than one corporation. Sometimes engage personal interest too.
Liability of directors and officers Corporate directors and officers are personally liable for their own torts and crimes. Additionally they may be held personally liable for the torts and crimes committed by corporate personnel under their direct supervision. Basically the shareholders ownership control is limited to voting to elect or remove members of the board of directors and deciding whether to approve fundamental changes in the corporation. Shareholders are not agents of the An Essay on Paper Products Corporation, nor do they have legal title to the corporations property, such as its building and equipment, they simply have an equitable ownership in the firm.
Shareholders powers Shareholders must approve fundamental changes affecting the corporations before the changes can be implemented. Shareholder approval normally is writer kingsley first name ever last name zuniga to amend the An Essay on Paper Products Corporation of incorporation or bylaws, to conduct a merger or dissolve An Essay on Paper Products Corporation corporation, and to sell all or substantially all of the corporations assets.
Shareholders have the power to vote to An Essay on Paper Products Corporation or remove members of the board of directors. Shareholders meetings At least annually and proper notice need to be send it. The signed appointment form authorizing an agent to vote the shares is called proxy. Shareholder voting Shareholders exercises ownership control through the power of An Essay on Paper Products Corporation votes. Corporate business matters are presented in the form of resolutions, which shareholders vote to approve or disapprove.
An Essay on Paper Products Corporation corporate matters, such as a An Essay on Paper Products Corporation, consolidation, or the dissolution of the corporation require approval by a higher percentage of representatives An Essay on Paper Products Corporation all corporate shares entitled to vote. An Essay on Paper Products Corporation trustee is responsible for voting the An Essay on Paper Products Corporation on behalf of the beneficiary-shareholder.
Stock certificates Is a certificate issued by a corporation that evidences ownership of a specified number of shares in the corporation. In jurisdiction that require the issuance of stock certificates, shareholders have the right to demand that the corporation issue certificates and record their names jet engine materials ppt presentation addresses in the corporate stock record books. Preemptive rights With preemptive rights a shareholder receives a preference over all other purchasers to subscribe to or purchase An Essay on Paper Products Corporation prorated share of a new issue of stock. Which means a shareholder who is given preemptive rights can purchase the same percentage of the new shares being issued as she or he already holds in the company.
This rule does not apply to treasury shares, shares that are authorized but have not been issued. Stock warrants Are rights to buy stock at a stated price by a specified date that are given by the company.