corporate governance mg 5326 class 1 definitions and concepts
Post on 18-Dec-2015
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Corporate GovernanceMG 5326
Class 1Definitions and concepts
Forms of business ownership
• Corporations and companies– Creates a distinct person by certificate of
incorporation or letters patent– Permits separation of ownership and control– 4 possible positions for an individual
• Incorporator• Shareholders• Directors• officers
copyright 2010 Janis Riven 2
Principal characteristics of a corporation
• Liability and the corporate veil– Exception = directors can be liable…
• Transfer of ownership through shares– Does not affect the existence of the
corporation
• Immortality• Raising capital– Through debt or equity (preferred or common)
copyright 2010 Janis Riven 3
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