ACC 205 Lecture Notes - Lecture 9: Derivative Suit, Business Judgment Rule, Preferred Stock
Document Summary
Main business form used in business" today. Most that you will lose is how much you put in. Double tax: business as a person under the law is required to pay taxes file an income tax statement, tax return, etc Corporations have both express and implied powers. Perpetual existence, make contracts, right to borrow/loan money, make charitable donations, ability to establish rules for managing corp. , contribute t political campaigns. Implied powers: anything reasonable to necessary to accomplish the corp. purpose. Due process, privacy, 4th amendment rights, free speech, right to litigate (sue and be sued) Where a corporation is acting outside of its stated purpose. Today most corp stated purpose to engage in any legal business . Lawsuit can be brought by shareholders or attorney general. From this state/ another state/ another country. Chc: generally does not offer stock to public. New member could be outvoted by family members.
