Corporate Governance MG 5326 Class 1 Definitions 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 Riven2

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 Riven3