Management and Organizational Studies 2275A/B Lecture 6: Chapter 16

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

Document Summary

Chapter 16 continues the discussion of issues pertaining to the corporation. The preceding chapter introduced the stakeholders in a corporation and examined various organizational matters including pre-incorporation issues, the incorporation process, and share structure. This chapter focuses on the liability of the corporation and the rights, duties and liabilities of the corporation"s major stakeholders, namely the directors, officers, shareholders and creditors. Emphasis is on understanding and managing the many and varied liabilities of the corporation and its directors. Understand the duties and liabilities of corporate directors and officers. Understand the rights and liabilities of shareholders and creditors. A corporation is a legal person in the eyes of the law. How can a corporation commit a tort when it does not have a mind of its own and does not have a physical existence? (cid:498)identification theory(cid:499) of corporate liability. Developed by the courts and provides that a corporation is liable when the.