🌕
Corporations • Rights of Shareholders
CORP#059
Legal Definition
Licensed professionals may incorporate as a professional corporation, which requires (1) the organizers to file articles with the name designated as "Professional Corporation" or "PC," (2) the shareholders be licensed professionals, and (3) the corporation practices only one designated profession. As a result, professionals are liable personally for their own malpractice, but the professionals are not liable personally for each others' malpractice or obligations of the corporation itself.
Plain English Explanation
A Professional Corporation ("PC") is basically a Corporation, but for licensed professionals, like attorneys. Why wouldn't they just form a corporation? Well, sometimes it isn't allowed. In most states, for example, professionals like attorneys, doctors, accountants, and architects are not allowed to form regular corporations, which means if they want similar protections and structure, they will, instead, form a PC.
Related Concepts
Are shareholder proxies revocable?
How is an action approved at a shareholder meeting?
In regards to shareholder suits, what are derivative action?
In regards to shareholder suits, what are direct actions?
In what form may dividends be paid?
What are the liabilities of shareholders and controlling shareholders?
What are the minimum meeting requirements for a corporation?
What are the requirements for a shareholder to examine books and records?
What are the requirements for calling a special shareholder meeting?
What are the three most common forms of distributions?
What are the traditional limitations on distributions?
What are the ways in which a corporation may restrict the transfer of shares?
What is a redemption right?
What is pooled or block voting?
What is the difference between traditional voting and cumulative voting?
What is the priority of distribution for dividends?
What is the procedure for a shareholder to bring a derivative action?
What is the procedure for a shareholder to vote by proxy?
When and how may shareholders eliminate corporate formalities?
When can or can't a board of directors declare a distribution?
Who has the right to vote at a shareholder meeting?
