Methods of Carrying Business
Someone who acts on behalf of someone else for a specific reason
Agent
Unlimited Personal Liability
Sole Proprietorship
People in charge of and managing the corporation
Directors and Officers
Appointed by directors to handle everyday actions of corporation
Officers
The term where a representative to the Principal must act in good faith and in their best interest
Fiduciary Duty
2 or more parties carry on business together with unlimited liability
General Partnership
Requires officers and directors to exercise due diligence a reasonable person would
Duty of Care
The rule which courts defer that business directors and officers acted reasonable and in the best interest
Business Judgment rule
Types of Authority
Apparent, Actual, and Usual
Liability limited to the amount of your investment
Limited Partnership
This document outlines the voting structure and owner responsibilities of the corporation
Shareholder's Agreement
Process of selling off corporations assets to pay off creditors
Liquidation/Dissolution
An arrangement where 2 or more parties cooperate for a purpose.
Strategic Alliance
Acts as its own legal entity and has rights
Corporation
Shareholders Remedies for when interests have been injured by acts from management
Derivative Action, Relief from Opression, Rectification
Test which requires there are grounds believing the corporation can meet its liabilities
Solvency Test
The set of rules that governs Agents
Special Statutes
Not liable personally for partners
Limited Liability Partnership
The term for pursuing commitment to environmental sustainability
Corporate Social Responsibility
The rule which states a corporation cannot rely on any provision in its articles which creates a defect in the agent's authority to defeat a contractual claim
Indoor Management Rule