A corporation is a legal entity created under state law, usually for the purpose of conducting business. The law treats a corporation as a person who can sue or be sued. A corporation is independent of its individual owners, or shareholders, who own shares in the company. A corporation is a legal entity created by individuals, shareholders or shareholders, for the purpose of operating for profit.
Corporations can enter into contracts, sue and be sued, own assets, remit federal and state taxes, and borrow money from financial institutions. Countries began enacting antitrust laws to prevent anticompetitive practices, and corporations were given more legal rights and protections. A for-profit corporation is almost always a stock corporation, but some for-profit corporations may choose not to be shares. The incorporation process was only possible through a royal charter or a private act and was limited, due to Parliament's zealous protection of the privileges and advantages granted.
Due to the abandonment of mercantilist economic theory at the end of the 18th century and the emergence of classical liberalism and the economic theory of laissez-faire due to a revolution in economics led by Adam Smith and other economists, corporations went from being entities affiliated with the government or the guild to being entities public and private economies free from government instructions. The concept of corporation was revived in the Middle Ages with the recovery and annotation of Justinian's Corpus Juris Civilis by glosators and their successors, commentators, in the 12th-13th centuries. Generally, the only personal assets that a shareholder of a corporation can lose in a lawsuit or to pay corporate debt is his investment in that corporation. In some cases, it will be a single individual, but most commonly, corporations are controlled by a committee or committees.
Elected members of the board of directors have a duty to care for shareholders and must act in the best interest of shareholders and the corporation. Corporations incorporated in regions where they are distinguished by whether they are allowed to be for-profit are called for-profit and non-profit corporations, respectively. The life of a corporate entity lasts until there is a change in its articles of association or the purpose of its existence has reached its peak. Another major shift after World War I was towards the development of conglomerates, in which large corporations bought smaller corporations to expand their industrial base.
The point was that the incorporation would outlive the life of any particular member, existing in perpetuity. A corporation can be created by a single shareholder or by several shareholders who come together to pursue a common goal. The first stage, tentative, cost £5 and did not grant corporate status, which came after completing the second stage for another £5.Once the articles are approved, the directors of the corporation meet to create bylaws that govern the internal functions of the corporation, such as meeting procedures and official positions.