BarBriCorporations Full Outline.docx
- 文档编号:30225186
- 上传时间:2023-08-07
- 格式:DOCX
- 页数:20
- 大小:27.64KB
BarBriCorporations Full Outline.docx
《BarBriCorporations Full Outline.docx》由会员分享,可在线阅读,更多相关《BarBriCorporations Full Outline.docx(20页珍藏版)》请在冰豆网上搜索。
BarBriCorporationsFullOutline
FormationRequirements
∙
(1)Incorporators:
musthaveatleastonepersonorentity;mustsign&fileAoI.
∙
(2)ArticlesofIncorporation:
articlesareacontractbetween(i)Corporation&Shareholdersand(ii)betweenCorporationandState.
oInformationrequiredinArticles:
▪(i)NamesandaddressesofCorporation(Corp,Company,Incorporated,Limited)
▪(ii)NamesandaddressesofeachIncorporator
∙SPLIT:
somestatesrequirenamesandaddressesofinitialdirectors.
∙NameofAgentforserviceofprocess:
officiallegalrepresentative
▪(iii)StatementofDuration(requiredonlyiflessthanperpetualexistence).
▪(iv)StatementofPurpose
∙GeneralStatementofPurposeisok(i.e.“toengageinanylawfulactivity")
∙UltraVires=whencorporationactsbeyondthecopeofthearticles.
oToday;UltraVirescontactsarevalid;butShareholderscanseekaninjunctionandofficers,directors,&employeesareliabletoCorporationforUltraVireslosses.
▪(v)CapitalStructureorStock
∙AuthorizedStock-maximum#ofsharesthecorporationcansell.
∙IssuedStock-numberofsharesthecorporationactuallysells
∙OutstandingStock-sharesthathavebeenissuedandnotreacquiredbythecorporation.
∙Articlesmustinclude:
Authorizedstock,numberofsharesperclassandinformationonparvalue,votingrightsandpreferencesofeachclass.
∙(3)FilingandFee
oIncorporatorsmustfilearticleswithSecretaryofStateandpayrequiredfee.AcceptancebySecretaryofStateisconclusiveproofofvalidformation.ThiscreatesaDEJURECORPORATION.
oInsomestates,Secretary’sissuanceofcertificateofincorporationisconclusiveproofofvalidformation.
LegalSignificanceofFormationofCorporation
∙InternalAffairsDoctrine:
rolesanddutiesofdirectors,officers,andshareholdersaregovernedbythelawofthestateofincorporation.
∙LimitedLiability:
shareholders(owners)arenotpersonallyliablefordebtsofcorporation.Thisistheprincipleof“limitedliability,”whichmeansthatshareholdersgenerallyareliableonlyforthepriceoftheirstock.
∙SeparateLegalPerson:
Acorporationisaseparatelegalperson.Itcansueandbesued,itcanholdproperty,itcanbeapartnerinapartnership,itcanmakecharitablecontributions,itmustpayincometaxesasanentity.
DefectiveCorporation
∙DeFactoCorporation:
o(a)thereisarelevantincorporationstatute;(b)thepartiesmadeagoodfaith,colorableattempttocomplywithit;and(c)someexerciseofcorporateprivileges.
oExample:
IncorporatorsdraftandsingarticlesandmailthemtoSecretaryofState.Theythinktheyformedacorporation,butthearticleswerelostinthemail.
oIfapplicable,treatedascorporationforallpurposesEXCEPTinanactionbythestateforexceedingitspowers(calledQuoWarranto).
∙CorporationbyEstoppel
oOnedealingwithabusinessasacorporation,treatingitasacorporationmaybeestoppedfromdenyingthebusiness’corporatestatus.
oCanbeinvokedagainst
(1)thecorporationfromavoidinganobligation;
(2)thosewhodealtwiththecorporation
oThisisonlyvalidincontractactions,nottort.
∙Statusofthe2doctrines:
Abolishedinmanystates.
Bylaws
∙Forinternalgovernance-e.g.layoutresponsibilities,setregularmeetingtimesandplaces,prescribemethodsofgivingnotice.
∙Whoadopts?
BoardofDirectors@theorganizationalmeeting.
∙Whocanamend/repeal?
Generally,onlytheshareholderscanamend/repealthebylaws(somestatestheBoardofDirectors).
∙Inmoststates,adoptionofbylawsisnotaconditionprecedenttoformationofacorporation.
PromoterLiability&Pre-IncorporationContracts
∙Apromoterisapersonactingonbehalfofacorporationnotyetformed.
∙LiabilityonPre-IncorporationContracts
oRule:
AcorpisnotliableonpreincorporationcontractsuntilitADOPTStheK.
oAdoption:
1of2ways:
▪
(1)Express:
BoardofDirectorsacttoadoptthecontract
▪
(2)Implied:
CorporationacceptsabenefitoftheK.
▪Adoptiondoesnotrelievethepromoterfromliability.OnlyNovationdoes.
∙LiabilityofthePromoteronPre-IncorporationContracts
oUnlessthecontractclearlyprovidesotherwise,thepromoterremainsliableonpre-incorporationcontractsuntiltherehasbeenaNovation.
▪Novation=anagreementofthepromoter,thecorporation,andtheothercontractingpartythatthecorporationwillreplacethepromoterunderthecontract.
∙SecretProfitRule
oPromotercannotmakeasecretprofitonherdealingswiththecorporation.
oThiscanhappenwherepromoteracquirespropertyeither1)beforebecomingpromoteror2)afterbecomingapromoter.
oWhatpromoterpaidisirrelevant,allwecareaboutisPricePaidbyCorporation-FairMarketValue.
oPromoterisonlyliableiftheprofitisSECRET.NotaproblemifCorp.knew.
ForeignCorporations
∙ForeignCorporations(incorporatedoutsideofthisstate)transactinginthisstatemustqualifybygettinga“certificateofauthority”fromSecretaryofStateandhavearegisteredagentinthestate
∙Transacting=regularcourseofintrastatebusinessactivity.Notoccasionalorsporadicactivityorholdingrealestate.
∙Consequencesofforeigncorp.transactingwithoutqualifying=civilfineandcorpcannotsueinthestate.
ISSUANCEOFSTOCK
∙Issuanceofstockoccurswhenacorporationsellsortradesitsownstock.Itisawaytoraisecapitalforthecorporation.
∙Subscriptions=writtenofferstobuystockfromcorporation
oPreincorporationsubscription--Apre-incorporationsubscriptionisirrevocableforsixmonthsunlessitprovidesotherwiseorallsubscribersagree.
oPostincorporationsubscription--Revocableuntilacceptance.Corporationandsubscriberbecomeobligatedwhentheboardacceptstheoffer.Atthatpoint,thesubscriberisobligatedtobuythestockandthecorporationisobligatedtoselltoher.
oCallforpaymentmustbeuniformwithineachclass-musttreateveryonethesame.
∙Consideration=whatthecorporationmustreceivewhenitissuesstock
oTraditionalRule:
(1)money(cashorcheck),
(2)tangibleorintangibleproperty,or(3)servicesalreadyperformedforthecorporation.
oModernTrend:
(1),
(2),(3),(4)futureservices;(5)promissorynotes.
oAmountofConsideration:
▪ParValue(minimumissuanceprice)ifCorpsetsone.Youcanalwaysgetmore.
▪IfNoParValue,BoardofDirectorssetsaprice.
▪TreasuryStock=stockthatwaspreviouslyissuedandhasbeenreacquiredbythecorporation.Thecorporationcanthenresellit.TreasuryStockisalwaysNOPARvalue(evenifitsayspar).Corpcansellitforanyprice.TheBODisresponsibleforputtingvalueonthestockbyactingingoodfaith.
▪WateredStock=IfCorporationIssuesparstockforlessthanparvalue
∙TheDirectorsANDtheBUYERareliableforwateredstock.Directorsarealwaysliable.Buyernotliableifactedingoodfaith(nonotice).
oPreemptiveRights=therightofanexistingshareholdertomaintainher%ofownershipbybuyingstockwheneverthereisanewissuanceofstockformoney(cashandequivalent).Somestatesdonotconsidertreasurystockorun-issuedsharesasanewissuance,andthuspreemptiverightsdonotattach.
oIfthearticlesdonotdiscusspreemptiverights,thereisasplitwhethertheSHwillhavepreemptiverights.
▪Traditionally,preemptiverightsexistunlessthearticlesprovideotherwise.
▪Moderntrendsayspreemptiverightsdonotexistunlessthearticlesprovideforthem(thistrendmaybethemajoritytoday)
oPreemptiveRightsexistonlyifitis$.Ifacorpissuesstocktoacquireproperty,thennopreemptiverightsexist.
DIRECTORSandOFFICERS
∙StatutoryRequirementsforDirectors
oNumber-1ormoreadulthumanbeings
oElection-shareholderselectdirectors(attheannualmeeting).Canelecttheentireboardorcanstaggertheboardbyhalvesorthirds(“staggeredboard”).
▪“Classifiedboard”=directorsaregroupedintodifferentclassesandeachclassiselectedbyadesignatedclassofshares.
oRemoval:
ShareholderscanremovedirectorsbeforetheirtermsexpireWITHORWITHOUTCAUSE.Requiresthevoteofamajorityofsharesentitledtovote.
▪Insomestatesacourtmayremoveadirectorforfraudorgrossabuse(mostlikelyinaclosecorporation).
oVacancy–Generally,theBoardfillsthevacancyontheBoard.IfvacancycamebecausetheSHremoved,theSHmustselectareplacement.Alsoifdirectorwaselectedbyaclassofshares,thatclassshouldselectthesuccessor.
oBoardAction:
ThereareONLYtwowaystheboardcantakeavalidact.
(1)unanimouswrittenconsenttoactwithoutameeting,or
(2)ameetingthatsatisfiesQUORUMandVOTINGREQUIREMENTS.
▪Aconferencecallqualifiesasameeting-justsoalldirectorscanheareachothersimultaneously.Ifneither
(1)nor
(2)ismet,theactisVOIDunlesslaterratifiedbyavalidcorporateact.
▪Noticeisnotrequired,unlessitisforaspecialmeeting.
▪NoProxiesorVotingagreementsallowedforDirectorvoting.TheyarevoidasagainstPublicPolicy.
▪Quorum=musthaveamajorityofalldirectorstodobusiness(unlessadifferent%isrequiredinbylaws).Ifaquorumispresentatameeting,however,passingaresolution(whichishowtheBoardtakesanactatameeting)requiresonlyamajorityvoteofthosepresent.(9directors,need5foraquorum.Need3foraresolution).Ifthereisnoquorum,theactisvoid.
∙QuorumofBoardcanbe“broken”ifpeopleleave,andoncethatpersonleaves,theBODcantdoanythingelse.
∙RoleofDirector–managesthebusinessofthecorporations
oThedirectorshaveaccesstocorporaterecordssotheycandischargetheirresponsibilities.
oCommittees:
Boarddelegatessubs
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- BarBri Corporations Full Outline