Asked by Dustin Politte on Apr 24, 2024
Verified
A corporation formed in substantial compliance with the incorporation statute and the required organizational procedures is a:
A) de facto corporation.
B) de jure corporation.
C) corporation by estoppel.
D) private corporation.
De Facto Corporation
A business entity that operates as if it were a corporation although it has not completed the legal formalities for incorporation, and may be treated as a corporation by courts.
De Jure Corporation
A corporation that has fully complied with all legal requirements for its establishment, and thus has legal recognition.
Corporation by Estoppel
A legal doctrine that prevents a party from denying the corporation's existence if they have dealt with it as if it were a legal corporation.
- Understand the processes and impacts of failed inclusion and the principle of estoppel within the realm of corporate law.
Verified Answer
RA
Regina Andriani7 days ago
Final Answer :
B
Explanation :
A corporation formed in substantial compliance with the incorporation statute and the required organizational procedures is a de jure corporation, which means it is a legally recognized corporation. A de facto corporation is one that lacks legal authority but is recognized as a valid corporation due to the good faith efforts of its organizers. A corporation by estoppel refers to a situation where a party is prevented from denying the existence of a corporation because they have treated it as if it is valid. Private corporation refers to a corporation that is not publicly traded.
Learning Objectives
- Understand the processes and impacts of failed inclusion and the principle of estoppel within the realm of corporate law.