Management and Organizational Studies 2275A/B Lecture Notes - Lecture 7: Legal Personality, Limited Liability Company, Employment Contract

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

Document Summary

Upcoming midterm is same as last midterm, as far as length, duration, location, difficulty, type, and location. Tl;dl write down goals to help realize those goals. Charitable corporations: sub-set of not-for-profit, can give out tax receipts. Corporation owns it"s assets: shareholders can"t walk up and take inventory from corp. Corporate carries out activities through agents: directors and officers (human agents) Management (officers) are appointed by directors: governance doesn"t change with respect to size. What duties do the directors and officers owe to the corporation: fiduciary duty. Have to act within the best interest of the corporation. Must act honestly and with good faith: duty of care. Aka duty of competence: contractual duty. Due diligence: do no less than what you"re required to do, can be seen as a defence to being sued for negligence. What duties to the directors and officers owe to the shareholders: none.