MGSC30H3 Chapter 17: Chapter 17 Notes
Document Summary
Corporation: an entity that has an existence at law that is separate from those who form it, from those who from time to time possess shares in it, or from those who are responsible for its direction and control. A corporation is a separate legal entity in the sense that it has an existence at law, but no material existence. It is artificially created and never dies in the natural sense. Separate and distinct from its shareholders authorized agents. , and it acts not through them but through its. A properly authorized agent may bind the corporation in contract with third parties. The shareholders of a corporation possess limited liability for the debts of the corporation, and the creditors may only claim the assets of the corporation. The principal officers are responsible for binding the corporation into contract with third parties. The shareholders do not participate in the management unless there are major changes.
