MGSC30H3 Chapter 18: Chapter 18 - Corporation Law
Document Summary
Corporation a type of legal entity created by the state. Director under the corporation law, a person elected by the shareholders of a corporation to manage its affairs. Shareholders" liability is limited to the amount that they paid or agreed to pay for the shares that they purchased from the corporation. In a partnership, every partner is an agent of the partnership, partners have input into how the business may be operated, and on important matters all parties must agree before a change can be made. In a large partnership, these particular rights of each partner often render decision-making awkward and time consuming, and make general control difficult. In a corporation, management is delegated by the shareholders to an elected group of directors, directors have the authority to make all decisions for the corporation. In a partnership, every partner has unlimited liability, careless act of one partner may affect all.
