What is a corporation?
It is a firm that meets certain legal requirements to be recognized as having legal existence
is a group of people or company that is authorized to act as a single person and recognized
as a person in law. A legal entity that is distinct and separate from its owners.
How does it work?
The most known corporation organizational structure consists of the:
- Boards of the directors
- Officers
- Employees
- Shareholders and owners
There can be much more as company required.
Employees make the business run. Shareholders own the corporation. That ownership may
be 100 percent in the hands of one individual, divided within a family or a few individuals, or
spread among tens of thousands or millions. Though shareholders may not participate in the
day-to-day management or have a direct say in decision-making, major shareholders
nonetheless carry great weight in influencing corporate decisions. This group routinely votes
on the election and removal of directors, amending by-laws, major corporate changes
(mergers, sales, dissolution), disposition of corporate assets, and amendment of the
Articles of Incorporation. Other shareholders may participate in these activities but to a
lesser extent. The level of shareholder influence on the board of directors is one of many
things to consider when forming a new corporation.
No comments:
Post a Comment