Principal Attributes Of A Corporation Case Study

1224 Words3 Pages

Identify the principal attributes and classifications of corporations.
The principal attributes of a corporation are: it is a legal entity separate from its shareholders, it owes its existence to the State; which also has the role to regulates its behavior, it provides limited liability to its shareholders, who are not liable for its debts or acts of the company, characterized by the freely transferable of corporation shares, its existence may be perpetual with a centralized management system in which shareholders do not manage the daily operations of the corporation, and it considered, for some purposes but not all a person and a citizen.

Corporations can be classified as follow: Public Corporation is established to administer public business that will benefit the general public. These types of corporations are created and owned by the government and the shares are publicly treated. Private Corporation is formed by private individuals primarily for private purposes and not public ones. (Charitable and religious, banking and manufacturing corporations.) Profit Corporation is formed with the primary goal to make profit. …show more content…

Distinguish the statutory and common law approaches to detective formation of a corporation.
Approach to detective incorporation under the Common Law: Corporation De Jure (of right) is formed in substantial compliance with the articles of incorporation stature and organizational procedure. Corporation De Facto (of fact) filed to complete the articles of incorporation therefore the State cha challenge the status of the corporation. Corporation by Estoppel does not create a corporation it only operates to prevent a person from raising questions regarding the existence of the corporation its capacity to act and own property. Detective Corporation associates who claimed to form a corporation but they failed to complete the requirements of the incorporation statute to the extent that associates are denied the benefits of

Open Document