Management and Organizational Studies 2275A/B Chapter Notes - Chapter 15: Canada Business Corporations Act, Legal Personality, Corporate Liability

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

Document Summary

Chapter 15 - the corporate form: organization matters. Predominant business vehicle separate legal entity. Corporation alone is responsible for debts and other liabilities corporation fails to make obligations, shareholders are not held responsible (but can lose the purchase price of their shares) Stakeholders: someone who has interest in a corporation: internal stakeholders: direct or indirect role in governing the corporation and determining how it will be achieved. Shareholders: invested in the corporation by buying shares in return for profit. Internal conflict can arise corporation law seeks to regulate relationships among internal stakeholders: external stakeholders: people who have dealings with or are affected by the corporation but do not have an explicit role in governing the corporation. Not generally involved in corporate governance, but still have an interest in corporation"s activities. Pre-incorporation issues: provincial and federal incorporation. Both governments have provided prototypes as to how the corporation comes into existence.