ADM 3360 Chapter 15: Ch. 15 – The Corporate Form - Organizational Matters
3 Dec 2016
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Stakeholders in the corporation: corporation artificial entity whose activities are controlled entirely by human beings. Legal existence; treated in law as a person: shareholders persons who have invested in the corporation by buying shares. No direct authority on the mgmt. of the business, but they can elect the board of directors: corporate officers (president, secretary, treasurer) an important internal group chosen by the board. *the bulk of corporation law is to regulate the relationship among the corporation"s internal stakeholders. Stakeholder: one who has an interest in a corporation. External stakeholders: government, general public, employees, customers : pre-incorporation issues. * depends on the kind of business, where it will operate, how it will be managed, etc: provincial and federal incorporation. *if business is done in many provinces, federal incorporation might lower admin. costs: shares and shareholders. Share structure: the shares that a corporation is permitted to issue by its constitution.
