Management and Organizational Studies 2275A/B Chapter Notes - Chapter 15: Transact, Insider Trading, Unsecured Debt

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

Document Summary

The corporation defined: predominant business vehicle in modern commerce b/c separate legal entity, corporation alone responsible for own debts and other liabilities, shareholders not responsible for defaults. Stakeholders in corporation: stakeholder: person who has interest in corporation. Must decide: whether to incorporate federally or provincially, what type of shares will be available and to whom, what to name corporation. Share structure: shares that corporation is permitted to issue by its constitution: class of shares, share represents ownership interest in issuing corporation. Tuesday, november 3, 2015: doesn"t give holder any right to use assets of corporation or any right to directly control/manage corporation, corporation may have 1 type/class of shares w/ all basic shareholders rights to: Share in proceeds on dissolution of corporation after creditors have been paid: many possibilities to create shares w/ diverse rights: Voting rights: right to vote for election of directors. Financial rights: right to receive dividends when declared/fixed dividends on regular basis.