Corporation

Corporations come in many different types but are usually divided by the law of the jurisdiction where they are chartered based on two aspects: by whether they can issue stock, or by whether they are formed to make a profit.

The stock (also capital stock) of a corporation is all of the shares into which ownership of the corporation is divided.

Corporations can be divided by the number of owners: corporation aggregate or corporation sole.

A corporation sole is one of two types of corporation, the other being a corporation aggregate.

To simplify the explanation, whenever "Stockholder" or "shareholder" is used in the rest of this article to refer to a stock corporation, it is presumed to mean the same as "member" for a non-profit corporation or for a profit, non-stock corporation.

A shareholder (also known as stockholder) is an individual or institution (including a corporation) that legally owns one or more shares of stock in a public or private corporation.

In American English, the word corporation is most often used to describe large business corporations.

The term refers to the legal practice of law relating to corporations, or to the theory of corporations.

In the last quarter of the 20th Century this new form of non-corporate organization became available in the United States and other countries, and was known as the limited liability company or LLC.

It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Early guilds and livery companies were also often involved in the regulation of competition between traders.

Livery companies evolved from London's medieval guilds, becoming corporations under Royal Charter responsible for training in their respective trades, as well as for the regulation of aspects such as wage control, labour conditions and industry standards.

A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity; a legal person in legal context) and recognized as such in law for certain purposes. Registered corporations have legal personality and their shares are owned by shareholders whose liability is generally limited to their investment. In American English, the word company can include entities such as partnerships that would not be referred to as companies in British English as they are not a separate legal entity.

A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity; a legal person in legal context) and recognized as such in law for certain purposes.

In the United States, a company may be a "corporation, partnership, association, joint-stock company, trust, fund, or organized group of persons, whether incorporated or not, and (in an official capacity) any receiver, trustee in bankruptcy, or similar official, or liquidating agent, for any of the foregoing".

Registered corporations have legal personality and their shares are owned by shareholders whose liability is generally limited to their investment.

In the UK there was initially a widespread belief that a corporation needed to demonstrate its creditworthiness by having its shares only partly paid, as where shares are partly paid, the investor would be liable for the remainder of the nominal value in the event that the company could not pay its debts.

In American English, the word company can include entities such as partnerships that would not be referred to as companies in British English as they are not a separate legal entity.

Among developed countries, for example, business partnerships are often favored over corporations in taxation policy, since dividend taxes only occur on profit before they are distributed to the partners.

The process of incorporation was possible only through a royal charter or a private act and was limited, owing to Parliament's jealous protection of the privileges and advantages thereby granted.

Incorporation is the formation of a new corporation.

Most jurisdictions now allow the creation of new corporations through registration.

Traditional franchise jurisdictions of various powers were held by municipal corporations, religious houses, guilds, early universities, the Welsh Marches, and counties palatine.

Early guilds and livery companies were also often involved in the regulation of competition between traders. Due to the late 18th century abandonment of mercantilist economic theory and the rise of classical liberalism and laissez-faire economic theory due to a revolution in economics led by Adam Smith and other economists, corporations transitioned from being government or guild affiliated entities to being public and private economic entities free of governmental directions.

In part due to their own inability to control unruly corporate behavior, the tide of public opinion turned against the guilds.

Entities which carried on business and were the subjects of legal rights were found in ancient Rome, and the Maurya Empire in ancient India.

Both had extensive trade connections and both had organizations similar to corporations.

In Germany, the organization was referred to as Gesellschaft mit beschränkter Haftung or GmbH.

Many private firms, such as Carnegie's steel company and Rockefeller's Standard Oil, avoided the corporate model for this reason (as a trust).

Established in 1870 by John D. Rockefeller and Henry Flagler as a corporation in Ohio, it was the largest oil refiner in the world of its time.

The next, crucial development, then, was the Limited Liability Act 1855, passed at the behest of the then Vice President of the Board of Trade, Mr. Robert Lowe.

The Limited Liability Act 1855 (18 & 19 Vict c 133) was an Act of the Parliament of the United Kingdom that first allowed limited liability for corporations that could be established by the general public in the UK.

The process of incorporation was possible only through a royal charter or a private act and was limited, owing to Parliament's jealous protection of the privileges and advantages thereby granted.

In the nineteenth century, Local Acts were used to create corporations, grant monopolies and, most frequently, for the construction of railways, canals and other infrastructure projects.

In a joint-stock company the members are known as shareholders and each of their shares in the ownership, control, and profits of the corporation is determined by the portion of shares in the company that they own.

Therefore, joint-stock companies are commonly known as corporations or limited companies.

Due to the late 18th century abandonment of mercantilist economic theory and the rise of classical liberalism and laissez-faire economic theory due to a revolution in economics led by Adam Smith and other economists, corporations transitioned from being government or guild affiliated entities to being public and private economic entities free of governmental directions.

The most obvious kinds of firms are corporations, partnerships and trusts.

Once the articles are approved, the corporation's directors meet to create bylaws that govern the internal functions of the corporation, such as meeting procedures and officer positions.

By-laws may be established by entities such as a business corporation, a neighborhood association, or depending on the jurisdiction, a municipality.

If a corporation operates outside its home state, it is often required to register with other governments as a foreign corporation, and is almost always subject to laws of its host state pertaining to employment, crimes, contracts, civil actions, and the like.

Employment is a relationship between two parties, usually based on a contract where work is paid for, where one party, which may be a corporation, for profit, not-for-profit organization, co-operative or other entity is the employer and the other is the employee.

If a corporation operates outside its home state, it is often required to register with other governments as a foreign corporation, and is almost always subject to laws of its host state pertaining to employment, crimes, contracts, civil actions, and the like.

Foreign corporation is a term used in the United States to describe an existing corporation (or other type of corporate entity, such as a limited liability company or LLC) that conducts business in a state or jurisdiction other than where it was originally incorporated.

It may also be required to designate an agent or other legal representative of the corporation.

In the case of a corporation, since a corporation can only act through natural person agents, the principal is bound by the contract entered into by the agent, so long as the agent performs within the scope of the agency.

In German corporate governance, a Vorstand is the executive board of a corporation (public limited company).