Management and Organizational Studies 2275A/B Study Guide - Final Guide: Rand Formula, Trans-Pacific Partnership, Moral Rights

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Susan Toth

Document Summary

Corporations, once formed, become a separate legal entity (incorporated company: created in order to bring in shareholders financing for company. Ha(cid:396)eholde(cid:396)s a(cid:396)e(cid:374)(cid:859)t i(cid:374)(cid:448)ol(cid:448)ed i(cid:374) ope(cid:396)atio(cid:374)s of the (cid:271)usi(cid:374)ess. Since the corporate entity is legal fiction, all activities must be carried out by real people acting as agents. Shares: give holders an interest in the corporation, (but not ownership) Shareholder: purchasing a share for a piece of the company, receive dividends. Closely held corp: usually small (but also ikea), owned by one family. Shareholders elect directors at annual general meeting (agm: directors, must be of age, of sound mind, no criminal record, and not insolvent (bankrupt, have fiduciary duty to corporation; to exercise care, diligence & skill of reasonably prudent person. Only duty is to corporation/shareholders obligation = maximize profits: officers and senior management also owe a fiduciary duty to corporation. If allow shares to be sold for less than the fair cash equivalent.