Explore the legal terms and concepts related to Formation Requirements. Click on any term below to learn more about its definition and applications.
Are bylaws required to form a corporation, and who is allowed to create and modify them?
No. A corporation need not adopt bylaws. The board of directors has the power to adopt and amend byl...
What is a foreign corporation and how does it gain the ability to operate?
A foreign corporation is a corporation incorporated outside the state that wishes to engage in regul...
Why are courts more willing to pierce corporate veils for tort victims?
Courts are generally more willing to pierce the corporate veil for a tort victim than for a contract...
In what instances will courts pierce the corporate veil?
Courts will pierce the corporate veil and hold a shareholder personally liable in order to avoid fra...
What is the legal significance of corporate formation?
The corporation itself is a separate legal person. Once the corporation is formed, the shareholders...
What is a corporation by estoppel and when does it apply?
Persons who treat an entity like a corporation are estopped from later claiming it was not. Corporat...
What is a de facto corporation?
A business failing to achieve de jure corporate status is nonetheless treated as a corporation if th...
What are ultra vires activities and their consequences?
Where a corporation narrowly or specifically identifies its business purpose, any action outside the...
How broad can a statement of business purpose be?
As broad as you want. A general purpose and perpetual duration is presumed, and businesses can and o...
What are the requirements for articles of incorporation?
Articles of incorporation must include: (1) the name of the corporation, (2) the number of shares th...
What is a de jure corporation and how is it formed?
A de jure corporation is a fully incorporated company, which indicates that all of the statutory req...
What is "piercing the corporate veil"?
Piercing the corporate veil is a method of directly going after the shareholders of a corporation to...
