Principles of accountancy by Goodyear Lloyd E. (Lloyd Earnest) b. 1867

Author:Goodyear, Lloyd E. (Lloyd Earnest), b. 1867
Language: eng
Format: epub, pdf
Tags: Accounting
Publisher: Cedar Rapids, Ia., Goodyear-Marshall publishing co

while avoiding some of the disadvantages of the partnership relation.

The ordinary private corporation is formed by virtue of general acts of legislation, which specify the steps to be taken by persons intending to incorporate, and which authorize the issuance, to the incorporators, of a certificate, or license, which evidences their compliance with the law. Their compliance with the legal provisions enables the corporators to act through the corporation in the following ways: (1) the capital stock (divided into shares) may be owned by stockholders, who can dispose of their interests in the company to other persons, and withdraw entirely from it, without affecting the continuance of the corporate organization; (2) the corporation may appoint, or remove officers or agents who conduct its business and make contracts; (3) the corporation may use a corporate seal and may acquire and dispose of real property in its own name ; (4) the corporation may incur debts for which the stockholders are not individually liable beyond the amount of their stock in the company, or such additional amounts as may be specified by the laws relating to specified kinds of corporations; (5) a corporation may perform all the ordinary business transactions that an individual may, provided they are within the purposes for which the corporation was formed.

Specific information about the powers, rights, and obligations, must be looked for in the laws of the state where incorporated.

When the authorized number of persons desire to incorporate, they draw up articles of incorporation or a certificate of incorporation. A blank incorporation form, to be filled out by the incorporators, can usually be secured from the Secretary of State in the state where the corporation is organized. These articles give the name of the corporation, purposes, amount of capital stock, number of shares, principal place of business, duration of corporation, number, names and addresses of the incorporating stockholders, the number of shares held by each, and other provisions.

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