The main emphasis of state corporate law is to regulate the creation

The main emphasis of state corporate law is to regulate the creation

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Sin Yi, Wong (Christy) FRL 302 Midterm 2 A. The main emphasis of state corporate law is to regulate the creation, organization, and dissolution of a corporation, and it deals with the formation and operations of corporations and its related to commercial and contract law. State corporation laws require articles of incorporation to document the corporation's creation and to provide provisions regarding the management of internal affairs (Legal Information Institute). Most state corporation statutes also operate under the assumption that each corporation will adopt bylaws to define the rights and obligations of officers, persons and groups within its structure (Legal Information Institute). According to Business Law: Texts and Cases, a corporation is a legal entity created under the laws of the state it’s incorporated within. A corporation creates a legal or “artificial person” or entity that has standing to sue and be sued, enter into contracts, and perform other duties necessary to maintain a business, separate from its stockholders ( Business Law). The main goal of corporation is to join together the efforts and resources of a large number of individuals for the purpose of producing greater returns than those persons could have obtained individually (Business Law). In contrast, federal securities law are comprised of a series of statutes, which in turn authorize a series of regulations promulgated by the government agency with general oversight responsibility for the securities industry, the Securities and Exchange Commission (Business Law). The two main statutes involves in the federal securities law are the Securities Act of 1933 and the Securities Exchange Act of 1934. The two basic objectives of the Securities Act of 1933 are require that investors receive financial and
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other significant information concerning securities being offered for public sale; and prohibit deceit, misrepresentations, and other fraud in the sale of securities (SEC). For Securities Exchange Act of 1934, with this Act, Congress created the Securities and Exchange Commission. The Act empowers the SEC with broad authority over all aspects of the securities industry (SEC). Generally speaking, the '33 Act governs the issuance of securities by companies, and the '34 Act governs the trading, purchase and sale of those securities. B
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This note was uploaded on 01/24/2012 for the course ECON 101 taught by Professor Newman during the Spring '11 term at Mt. SAC.

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The main emphasis of state corporate law is to regulate the creation

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