LAW 603 Chapter Notes - Chapter 22: Strict Liability, Transfer Tax, Securities Regulation In The United States
22 Jul 2016
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Law603 chapter 22 notes: legal rules for corporate governance. Shareholders: are the residual claimants to the assets of the corporation and elect the directors. After creditors are paid, shareholders are entitled to the remaining assets. Do not participate in managing the business of the corporation. Directors: are responsible for managing or supervising the management of the business of the corporation and its internal affairs including shares, declaring dividends, and calling shareholder meetings. Officers: are appointed by the directors of a corporation and usually exercise substantial management powers delegated to them by the directors. Private corporations: have few shareholders and the same people may be the shareholders, directors and officers. Public corporations: are corporations that have distributed their shares to the public with only a few shareholders involved in the corporation as directors and officers. Shareholders must act collectively (this is done differently depending on whether it"s a public/private corporation)
