MGSC30H3 Chapter Notes - Chapter 17: Profit Motive, Corporate Security, Majority Rule
Document Summary
An entity that has an existence at law that is separate from those who form it, those who possess shares in it from time to time, and those responsible for direction and control. Shareholders: who to make management decisions? is entitled. A corporation is a separate legal entity (body) in the sense that it has an existence at law, but no material existence. It has attributes of a natural person but it is artificially created and never dies. In a modern sense, corporations are rightly described as having the powers of a natural person at least in terms of their ability to contract. A natural person has limited liability, in that liability only extends to the limits of his or her individual property. Its rights and duties are delineated by the law and it can be terminated by the state.