Corporate Duties
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DUTIES OF CORPORATE PEOPLE 1
Duties Of Corporate People
Frederick Robinson
BUS 670: LEGAL ENVIRONMENT
Instructor: Gary Gentry
Date: May 24th, 2011
DUTIES OF CORPORATE PEOPLE 2
[ABSTRACT SUMMARY]
Corporate people work in various types of corporations. Corporations vary from government-owned and non-profit corporations, from publicly held corporations to close corporations. Within such corporations, there’s often a director, officers’, and shareholders, all working together in the best interest of the corporation. Thus, this paper seeks to analyze the difference between publicly held and close corporations, as well as the duties of a corporate director, officers’, and shareholders.
DUTIES OF CORPORATE PEOPLE 3
Corporations are generally formed in the same manner. Money is needed which is often provided by investors, banks, or shareholders, yet many corporations differ with limitations according to the type of corporation formed.
According to Mallor, Barnes, Bowers, and Langvardt (2010), the General Motors Corporation is type of publicly held corporation due to the fact that its’ shares are available to the public through public investors. This type of corporation is run qualified managers who perform duties in the best interest of the organization and shareholders, yet run by professional managers who also own a small percentage of the corporation. This differs from a close corporation in that the shareholders have controlling interests and manage the corporation themselves. Between the two types of corporations, they both must abide by the same rules outlined in state corporation law. On the other hand, several states allow more freedom for close corporations regarding their internal matters, versus public held corporations. For example, shareholders of a close corporation may be permitted to dispense with the board of directors and manage the...
Duties Of Corporate People
Frederick Robinson
BUS 670: LEGAL ENVIRONMENT
Instructor: Gary Gentry
Date: May 24th, 2011
DUTIES OF CORPORATE PEOPLE 2
[ABSTRACT SUMMARY]
Corporate people work in various types of corporations. Corporations vary from government-owned and non-profit corporations, from publicly held corporations to close corporations. Within such corporations, there’s often a director, officers’, and shareholders, all working together in the best interest of the corporation. Thus, this paper seeks to analyze the difference between publicly held and close corporations, as well as the duties of a corporate director, officers’, and shareholders.
DUTIES OF CORPORATE PEOPLE 3
Corporations are generally formed in the same manner. Money is needed which is often provided by investors, banks, or shareholders, yet many corporations differ with limitations according to the type of corporation formed.
According to Mallor, Barnes, Bowers, and Langvardt (2010), the General Motors Corporation is type of publicly held corporation due to the fact that its’ shares are available to the public through public investors. This type of corporation is run qualified managers who perform duties in the best interest of the organization and shareholders, yet run by professional managers who also own a small percentage of the corporation. This differs from a close corporation in that the shareholders have controlling interests and manage the corporation themselves. Between the two types of corporations, they both must abide by the same rules outlined in state corporation law. On the other hand, several states allow more freedom for close corporations regarding their internal matters, versus public held corporations. For example, shareholders of a close corporation may be permitted to dispense with the board of directors and manage the...