Podcast
Questions and Answers
What is one key attribute of a corporation mentioned in the text?
What is one key attribute of a corporation mentioned in the text?
- Created by mere agreement of parties
- Dissolves upon the death of a shareholder
- Perpetual existence (correct)
- No legal existence separate from shareholders
How is a corporation created according to the text?
How is a corporation created according to the text?
- By operation of law (correct)
- By transferring ownership of shares
- By simple agreement of the parties
- By dissolution of individual shareholders
What happens to a corporation if a shareholder withdraws?
What happens to a corporation if a shareholder withdraws?
- The corporation becomes an individual entity
- The corporation dissolves
- The corporation loses its powers
- The corporation becomes a partnership
- The corporation continues to exist (correct)
What is required for a corporation to have a legal existence?
What is required for a corporation to have a legal existence?
A corporation is a natural being with a personality separate from its individual shareholders.
A corporation is a natural being with a personality separate from its individual shareholders.
What characteristic does NOT apply to a corporation based on the text?
What characteristic does NOT apply to a corporation based on the text?
A corporation can come into existence solely by an agreement between parties, similar to business partnerships.
A corporation can come into existence solely by an agreement between parties, similar to business partnerships.
A corporation enjoys the right of succession and can have perpetual existence.
A corporation enjoys the right of succession and can have perpetual existence.
The death or withdrawal of individual shareholders dissolves a corporation.
The death or withdrawal of individual shareholders dissolves a corporation.
A corporation possesses powers, attributes, and properties not authorized by law.
A corporation possesses powers, attributes, and properties not authorized by law.
Study Notes
Key Attributes of a Corporation
- A corporation is recognized as a natural being with a distinct personality, separate from its individual shareholders.
- Corporations have the right to succession, allowing them to continue existing regardless of changes in ownership or management.
Creation of a Corporation
- A corporation can be established simply through an agreement among individuals, similar to the formation of business partnerships.
Impact of Shareholder Changes
- The withdrawal or death of a shareholder does not affect the corporation's existence; it is designed to have perpetual existence.
Legal Existence Requirements
- For a corporation to maintain legal existence, it must fulfill specific legal requirements set by jurisdiction, such as filing articles of incorporation and adhering to regulatory frameworks.
Characteristics of Corporations
- Corporations possess powers, attributes, and properties that may not be explicitly granted by law, expanding their operational capabilities.
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Description
Explore the distinctive characteristics of corporations, including their artificial legal personality and creation by law rather than agreement among individuals. Learn about the special authority required from the state for the formation of corporations.
