BUS 018 Lecture Notes - Lecture 7: Fiduciary, Livent

• School: College of The Sequoias
• Department: Business (BUS)
• Course: BUS 018
• Professor: Baiza

Document Summary

From this notion that a corporation is a separate person is the idea that it has limited liability. Shareholders have limited liability with respect to corporate debt. Sometimes individuals will give up their limited liability. This is simply because of the contractual idea of giving a guarantee of that debt. A corporation is imaginary and fictional but it exists . It"s real in the sense that it has all the rights and powers that you and i have with respect to running a business. No legal difference between me to carry on a business and a corporation to carry on business. They have shareholders, they don"t own the assets. When you and i do business, we sign our names as sole-proprietors. Corporations as being imaginary cannot do this cannot sign names or talk on the phone. They carry it on through their agents. How do directors get to be directors they are voted by the shareholders.