ADM 1340 Lecture : Chapter 11 Lecture Notes

• School: University of Ottawa
• Department: Administration
• Course: ADM 1340
• Professor: Lamia Chourou

Document Summary

The continuance of a corporation is not affected by withdrawal, death, or incapacity of a shareholder, employee, or officer: corporation management, shareholders manage a corporation indirectly through a board of directors, which they elect, board of directors formulates operating policies and selects officers to execute policy and to perform daily management functions, the corporation hires professional managers to run the business, so the owners are not required to have managerial expertise, this separation of ownership and management can be viewed as an advantage or as a weakness, government regulations, federal and provincial laws usually prescribe the requirements for issuing shares and the distributions of profits permitted to shareholders, provincial securities regulations govern the sale of share capital to the general public, and corporations listed in foreign security markets must also respect their requirements, complying with securities regulations increases the cost and complexity of the corporate form of organization.