If Incorporators Cannot Show Substantial Compliance with Statutes Regarding Incorporation

question 67

Multiple Choice

If incorporators cannot show substantial compliance with statutes regarding incorporation but can show that they were unaware of any defect and acted in good faith,a court may treat the entity as a(n) :

• A) de jure corporation.
• B) real corporation.
• C) de facto corporation.
• D) equitable corporation.

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Definitions:

Shareholders' Meeting

A gathering of a corporation's shareholders, held to discuss the company's performance, elect the board of directors, and make decisions on major company issues.

Embezzlement

The act of dishonestly withholding or misappropriating funds or assets that have been entrusted to someone's care, typically in a work or official capacity.

Personal Liability

The legal responsibility of an individual to compensate for harm or loss caused by their actions or negligence.

Treasury

A government department responsible for managing the finances, revenue, and economic policy of a country.