Corporations
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Corporation Classifications
“Corporations are classified based on their locations, purpose or owners.” (Cheeseman, 2004) A private corporation can either be for profit or nonprofit. With a for profit corporation, the business is able to disperse profits with its stakeholders. A nonprofit corporation is able to make a profit but by law it is not allowed to disperse these profits with its member, etc.
Public corporations are used primarily for government or political purposes. Examples of these types of corporations are your local water agency, your childs school and the public park down the street. Private corporations are the corporations that conduct personal business.
Promoters
The promoter of a corporation is the person(s) that start the corporation. They are the people who negotiate contracts in advance of the formation of the corporation; they find investors for the corporation who will finance the creation and further activities of the corporation. A corporation is far different from that of a sole proprietorship. The promoter of the corporation can also be held liable for the contracts it generates if the corporation never commences.
Corporate Bylaws
Along with being governed by the articles of incorporation, each corporation is governed by their bylaws. These bylaws are very detailed in comparison to the articles of incorporation and contain provisions for managing the business and its affairs. Members of the Board of Directors are the only people that can amend or change bylaws for the corporation unless it is stated otherwise by the article of incorporation.
Dissolution and Termination of Corporations
A corporation can be dissolved in three ways; Voluntary, Administrative, and Judicial. Voluntary dissolution can only happen as long as the majority rules with the Board of Directors when voting on the