LAW 122 Chapter Notes - Chapter 13: Fiduciary, Financial Statement, 18 Months

• School: Ryerson University
• Department: Law and Business
• Course: LAW 122
• Professor: Michael Lapointe

Document Summary

The corporation itself carries on business, owns property, possesses rights, and incurs liabilities (including liabilities for crimes and torts) A shareholder can be an employee or a creditor of the corporation. The corporation is unaffected if a shareholder dies or withdraws from a business. Treated as a separate taxpayer so i(cid:374)(cid:272)o(cid:373)e or losses fro(cid:373) the (cid:272)orporatio(cid:374)"s (cid:271)usi(cid:374)ess are attri(cid:271)uted to the corporation, and it is liable for the applicable tax. Shareholders are taxed only when they personally receive something from the corporation, such as a dividend. Shareholders have limited liability (shareholders cannot lose more than they invest in the corporation in return for their shares) Board of directors consists of the individuals elected by the shareholders to manage the corporation. Officers the people to whom the board of directors delegates responsibility for managing the corporation; the dire(cid:272)tors the(cid:374) (cid:373)o(cid:374)itor a(cid:374)d super(cid:448)ise the offi(cid:272)er"s (cid:373)a(cid:374)age(cid:373)e(cid:374)t of the (cid:272)orporatio(cid:374)"s (cid:271)usi(cid:374)ess. In smaller companies, the shareholders are also the directors and officers.