SOC 3490 Chapter 1: Glasbeek – The Corporation as an Invisible Friend
8 Feb 2017
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Leaders and ceos of corporations hide behind their corporation like a child hides behind an imaginary friend. We blame the corporation as a whole and not the head of it. The essential characteristics of the invisible friend: the corporation for profit. Virtually no legal barriers for anyone who wants to form a corporation. Implies the laws eagerness to help us form corporations. Sphere of freedom of decision making and action. Section 15 of the canadian business corporations act: (cid:862)a (cid:272)orporatio(cid:374) has the (cid:272)apa(cid:272)ity a(cid:374)d the rights, po(cid:449)er, a(cid:374)d pri(cid:448)ileges of a (cid:374)atural perso(cid:374)(cid:863: the law treats corporations as if they were real people. Can legally engage in speech, base claims on religious/political beliefs, and claim privacy protection. Legal personality allows a corporation to own property. Has limited liability: owns the property invested in it and borrowed by it: enables it to buy, sell, lease, assign, or mortgage property. Makes it truly separate and distinct from its investors.
