Express powers found in the corporations articles of

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Express Powers . Found in the corporation’s articles of incorporation, the laws of the state of  incorporation, and in the state and federal corporations. Corporate by-laws may also grant or limit a corporation’s express powers.  Implied Powers. To perform all acts reasonably necessary to accomplish its corporate purposes. A corporate officer can bind corporation in contract in matters connected with the  ordinary business affairs of the enterprise .
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What is the Ultra Vires Doctrine? Ultra Vires Doctrine. Corporate acts beyond the express or implied powers of   the corporation (by statute of  articles of incorporation). Corporate articles of incorporations now adopt very broad purposes to prevent lawsuits  against the corporation. What are the different classification of Corporations? De Jure      and      De Facto      Corporations.       De Jure:   substantial statutory requirements are met; cannot be  attacked by state or 3 rd  parties.   De Facto statutory requirements not  met, but promoters made good faith effort to  comply with corporate law; can only be attacked by state How does a corporation come into existence? Corporation by Estoppel:  i f it acts like a corporation, cannot avoid liability by claiming  that no corporation exists. What does it mean to disregard the corporate entity (piercing the corporate veil)? Piercing the Corporate Veil. In certain situations, courts will “pierce the corporate veil” and hold shareholders  personally liable in the interests of justice and fairness. Factors  a court considers:  3 rd  party tricked into dealing with a corporation rather than the individual.   Corporation is set up never to make a profit or remain insolvent or is undercapitalized. Corporation is formed to evade an existing legal obligation. Statutory formalities are not followed. 
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Know the difference between stocks and bonds Bonds. Issued by business firms and government at all levels. Normally have a  maturity date  – when principal is returned to investor. Sometimes referred to as fixed-income securities, because bondholders receive fixed- dollar interest payments. Bond indenture : lending agreement Stocks. Common Stock : represents true ownership of a corporation.  Provides pro-rata (proportional) ownership interest reflected in voting, control, earnings  and assets. Investors who assume a residual financing position (whatever is left may go to dividends  to shareholders).  Directors, Officers and Shareholders   Know the role and function of Corporate Directors and Officers A corporation is governed by a board of directors elected by shareholders.
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