CorporateLaw2 - hired. hiscontract.,butalsoaloyaltyto...

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Corporate Law Assignment 2 • The enterprise is still conducted for the sole benefit of the owner when an agent is  hired.  The agent only shares in the receipt of the enterprise by the extent provided in  his contract.  He not only has a contractual duty to the principal, but also a loyalty to  serve its interests. - When multiple owners are included, this situation is not changed. • Business is a private enterprise that exists for the profits of its owners. - Contract rights are against the corporation, rather than individuals.  Owners are limited in their liability to the assets of the corporation. • In modern day, shareholders have lost control in modern corporations. - Directors and mangers are granted novel powers through statutes and charters, and  they are free from any supervision from stockholders due to it being difficult for  stockholders to be informed of everything going on and doing something based on that  information. - Managers have not acted as beneficiaries of their respective companies. • The theory of the corporate entity sees the corporation as a distinct legal person,  carrying on business and making contracts, while managers and directors are agents of  it.  The shareholders are still the owners of the entity, and all agents report to them. • Public opinion leads the direction of a view of business corporations as economic  institutions that have a social service as well as a profit-making function.
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  • Fall '09
  • ERNIESMITH
  • Business, Law, final product, representative, Concentrated industries

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