Management and Organizational Studies 2275A/B Chapter Notes - Chapter 15: Legal Personality, Fiduciary, Authorised Capital

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

Document Summary

The corporation is the predominant business vehicle in modern commerce because it is a separate legal entity. The corporation alone is responsible for its own debts and other liabilities. Liability falls on that entity- be it an individual or a corporation- and that entity alone. The cornerstone of corporation law- limited liability- is secure. The corporation has a legal existence and, as such, is treated in law as a person. A corporation not only comes into being through the actions of humans, but also can make decisions, formulate policy, and enter contracts only through the actions of humans. Stakeholders: one who has an interest in the corporation. Internal stakeholders are those who have either a direct or indirect role in governing the corporation and determining its mission and how it will be achieved. Shareholders do not have any direct authority to manage the corporation. However, they do have the power to elect the board of directors.