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You can think of a company as being a chartered commercial organization or
medieval trade guild an association of persons for carrying on a commercial or
industrial enterprise.
Definition from
http://legal-dictionary.thefreedictionary.com/:
"n. any formal business entity for profit which may be a corporation, a
partnership, association or individual proprietorship. Often people think the
term "company" means the business is incorporated, but that is not true. In
fact, a corporation usually must use some term in its name such as
"corporation," "incorporated," "corp." or "inc." to show it is a corporation."
Generally, a company is a legal entity, created by one or more persons, under
the jurisdiction of a particular country or state. There are various types of
legal entities under law, such as partnerships (general or limited), limited
liability companies, companies limited by shares, or companies limited by
guarantee.
Definition of a Corporation from
http://legal-dictionary.thefreedictionary.com/:
"n. an organization formed with state governmental approval to act as an
artificial person to carry on business (or other activities), which can sue or
be sued, and (unless it is non-profit) can issue shares of stock to raise
funds with which to start a business or increase its capital.
"One benefit is that a corporation's liability for damages or debts is
limited to its assets, so the shareholders and officers are protected from
personal claims, unless they commit fraud.
"For private business corporations the Articles of Incorporation filed with
the Secretary of State of the incorporating state must include certain
information, including the name of the responsible party or parties
(incorporators and agent for acceptance of service), the amount of stock it
will be authorized to issue, and its purpose. In some states the purpose may
be a general statement of any purpose allowed by law, while others require
greater specificity.
"Corporation shareholders elect a board of directors, which in turn adopts
bylaws, chooses the officers and hires top management (which in smaller
corporations are often the directors and/or shareholders). Annual meetings are
required of both the shareholders and the Board, and major policy decisions
must be made by resolution of the Board (which often delegates much authority
to officers and committees). Issuance of stock of less than $300,000, with no
public solicitation and relatively few shareholders, is either automatically
approved by the state commissioner of corporations or requires a petition
outlining the financing.
"Some states are considered lax in supervision, have low filing fees and
corporate taxes and are popular incorporation states, but corporations must
register with Secretary of States of other states where they do substantial
business as a "foreign" corporation.
"Larger stock offerings and/or those offered to the general public require
approval by the Securities and Exchange Commission after close scrutiny and
approval of a public "prospectus" which details the entire operation of the
corporation. There are also non-profit (or not for profit) corporations
organized for religious, educational, charitable or public service purposes.
"Public corporations are those formed by a municipal, state or federal
government for public purposes such as operating a dam and utility project. A
close corporation is made up of a handful of shareholders with a working or
familial connection which is permitted to operate informally without
resolutions and regular Board meetings.
"A de jure corporation is one that is formally operated under the law,
while a de facto corporation is one which operates as if it were legal, but
without the Articles of Incorporation being valid. Corporations can range from
the Corner Mini-Mart to General Electric."
A Company can do anything that a person can do, subject to any limitations
which may be included in the Articles of Incorporation or Memorandum & Articles
of Association. Often these incorporation documents include a very broad
business purpose, such as "everything which is not prohibited by law".
Definition of Limited Liability from
http://legal-dictionary.thefreedictionary.com/:
"n. the maximum amount a person participating in a business can lose or be
charged in case of claims against the company or its bankruptcy. A stockholder
in a corporation can only lose his/her investment, and a limited partner can
only lose his/her investment, but a general partner can be responsible for all
the debts of the partnership. Parties to a contract can limit the amount each
might owe the other, but cannot contract away the rights of a third party to
make a claim."
Other pages which might be of interest:
Panama
Corporations | Anguilla IBC |
BVI IBC |
Belize IBC | UK Company | Panama LLC
| Nevis LLC | Agreements | Resolutions | Share Transfers
[ About Koru ] [ Services ] [ Offshore News ] [ Know Your Client ] [ Corporation Definitions ] [ Belize IBC ] [ BVI Business Companies ] [ Hong Kong Company ] [ Nevis Companies ] [ Panama Corporations ] [ Yacht Registration Services ] [ Fee Schedules ]
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Page updated
12-Sep-2007 | 