Management and Organizational Studies 2275A/B Chapter Notes - Chapter 16: Legal Personality, Fiduciary, Income Tax

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Generally, it is the highly placed corporate officers who are classified as. Directing minds, while low-level employees are not: a corporation has vicarious liability when an agent or employee who is not a directing mind of the corporation has committed the tort. This precaution is equally important in the case of pre- incorporation contracts: pre-incorporation contracts are contracts that have been entered into by the company"s promoter"s on behalf of the corporation before it has even been created. Criminal and regulatory liability: when adoption occurs, the corporation assumes liability on the contract, criminal liability. An offence contrary to the public interest. The directors, who are elected by shareholders, manage or supervise the management of the business and the affairs of the corporation. They also have specific power and obligations set out in legislation. Directors are generally authorized to appoint officers to carry out many of their duties and exercise most of their powers.