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Managing a Corporation

Corporate Directors: These are people elected by the shareholders to make broad policy decisions in the running of a corporation. These people are the ones who usually own the companies and make the decisions that count.

Corporate officers: - These are people chosen by the directors to run the day-to-day affairs of a corporations. They are like your assistant manager at work on a bigger scale. Corporate shareholders: - Simply they are the owners of the company. Even if you buy one share of a company in the stock market you somewhat own that business. The ones who own the most of the company are looked at to be the main shareholders of owners. They also show the most influence on what the company is to do.

The Rights of Shareholders:

Receive a stock certificate Receive dividends Examine the corporate books and records

Transfer all shares

Maintain a proportionate share of stock exercise a vote for each share of stock owned Sue

The Right to Sue: There are three different types of lawsuits that share holders can bring direct suits, class action suits, and derivative suits. - Direct Suit: This is a lawsuit a share holder can bring a corporation for denying his or her rights as a shareholder. - Class action Suit: This is a lawsuit that ties into the direct suit. The class action suit is to bring a lawsuit against a corporation on behalf on all the shareholders in their position. - Derivative suit: This is a lawsuit a shareholder can bring on behalf of the corporation to correct an injury to the corporation.

Liability of Directors and Officers:

Insider Trading: This is when a corporation director or officer buys or sells shares in a corporation based on firsthand information about the corporation that isnt available tot eh public. Example would be Martha Stewart and the In 2004, when she was convicted of lying to investigators about a stock sale and served five months in a West Virginia federal prison.

Financing, Expanding, and Dissolving a Corporation

This is where the Columbia gets involved into the slide show. - Corporate Stocks: -Corporations raise money for there corporations by selling stock and by law they have to. -People usually buy stocks through brokers or agents that are well aware of the current economic condition and know whether or not it is a good decision to buy or sell stock. Columbia does the same thing to raise money for themselves. -Types of Stock: There are two types of corporate stock: common stock & preferred stock. -Common stock means you have voting rights to the company. -Preferred stock is to have a fixed dividend and are the first share holders to be paid. How ever they are not able to vote in the company.

Corporate Expansion
Merger & Consolidation: A merger is when two companies join together, with one company keeping its corporate identity and then other company losing its corporate identity. A conglomerate is a corporation that owns many different types of companies. . Example: When Columbia bought Sorel boots. They created a new look to the company itself. Brand_Core%20Brand_General&did=sorel&utm_source=googl e&utm_medium=cpc&utm_term=sorel&utm_campaign=Brand_ Other_Core%20Brand&eid=google_us&gclid=CKOHuKSA3aw CFQYBQAodNndeNg

A consolidation is when two or more companies join together to form a new corporation.

A good example of this is when Exxon and Mobil gas or oil companies were huge competitors and then they join together to create Exxonmobile

Acquisition, Franchises, and Dissolution of Corporation

- Asset acquisition is when one corporation agrees to purchase the assets, such as property, buildings, and equipment of second corporation. - Stock acquisition is when an individual or a corporation buys enough shares of stock in another corporation to take over control of it. - Franchise is a license a company grants to a business or individual for the right to use its name and sell its products or services. - Dissolution can happen in two ways either Voluntary or Involuntary. - Voluntary if a unanimous vote amongst the shareholders is to stop the corporation they need 2/3 vote in order to do this. - Involuntary is when a corporation was formed by fraud, conducted business illegally, its also can get a quo warranto by the state so that the corporation can no longer be able to do business in the state.

Thank you!