Copy of corporations - I. CORPORATIONS: An artificial...

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I. CORPORATIONS: An artificial person created under the statutes of a state or nation, organized for the purpose set out in the application for corporate existence. A corporation is a separate legal entity. II. ADVANTAGES: a. Insulation from personal liability to shareholders. ( Shareholders liability is usually limited to the amount of money the shareholders invest). b. Centralization of management functions: The officers run the day-to-day operations of the corporation and are hired by and advised by the board of directors. The board supplies the long term direction and goals of the corporation. The owners of the corporation are the shareholders. c. Continuity of existence: The corporation exists perpetually. III. TYPES OF CORPORATION: A. Public Issue Corporations: Large corporations governed by the SEC with high turnovers of officers, directors and owners. B. Closely Held Corporations: Shares are not made available for public purchase. ( Usually goes public. You can have one shareholder that owns all of the stock of the corporation .) C. Public or Municipal Corporations: Towns set up as corporations. D. Professional Corporations: Medicine, Law, Accounting etc. You can only be a shareholder if you are a licensed professional. Insulation from liability except for liability incurred by practice of profession. (e.g except malpractice).
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IV. FORMATION You have to file an application (articles of incorporation which include bylaws) to get a certificate of incorporation. ( It is like the birth certificate of a legal person). A. PROMOTER ( A promoter is someone who, before they take any steps to incorporate, go out and generate business before they file the articles of incorporation. i.e someone who represents the corporation (as the corporation) before the corporation legally comes into
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Copy of corporations - I. CORPORATIONS: An artificial...

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