Essay About Increasing Number And Financial Support Of Organizations

Director and Shareholder
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Director and Shareholder Liability: While the general rule is limited
liability, there are situations where directors and even shareholders of a
corporation could be held personally liable for certain acts or failures of the
corporation. There are many statutes that created personal liability on the part
of directors and even shareholders. Also, the directors or shareholders might
engage in activities, or fail to take certain steps, that could create personal
liability. Without proper legal advice on the activities of a corporation, the
benefits of using a corporation to conduct business could be lost.( Business and
Politics P.23-26)
Overall The biggest disadvantage of a corporation is that corporations are subject
to taxes. Corporations are not like proprietorship and partnership forms of
organization, they must pay federal income taxes. Also, stockholders must pay
income taxes on any dividends distributed to them. So, all the corporations are
being tax twice and it is what is call double taxation.
In my view why lots of companies like Corporation, the most important reason
must be when the company was breaking or can counting to business. If the
company is a Corporation , it cannot pay all the money for shareholders because
it is broke, and then the government will help them to solve that. So that lots of
people will choose corporation to start with business.
However, in A fundamental tenet of corporate law is that a business corporation
is organized and carried on for the benefit of its stockholders. In recent times,
an increasing number of for-profit organizations have formed in order to pursue
social and environmental goals. There is a growing investor movement toward
the financial support of organizations that have social benefit purposes at the
center of their existence. However, it may be difficult for directors and officers of
these organizations to pursue these social purposes without running afoul of
traditional fiduciary duties requiring corporate managers to maximize