Asked by
Matthew Perez
on Nov 01, 2024Verified
If only a minor requirement of incorporation has been left unsatisfied,the court will allow any shareholder to directly sue and challenge the de facto corporation's existence.
Minor Requirement
A smaller or less significant obligation or condition that must be fulfilled, often in addition to major requirements.
De Facto Corporation
A corporation defectively incorporated in good faith that exists in fact though not in law.
Incorporation
The process of legally declaring a corporate entity as separate from its owners, providing it with its own rights, privileges, and liabilities distinct from those of its members.
- Evaluate the outcomes of non-compliance with legal protocols in the establishment of a corporation, considering the ideas of de facto and de jure entities.
Verified Answer
NM
Learning Objectives
- Evaluate the outcomes of non-compliance with legal protocols in the establishment of a corporation, considering the ideas of de facto and de jure entities.