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  • Will You Add? - Running a Corporation – Shareholders and Directors

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    nnot be held liable for the resulting judgments.

    This liability protection comes with a price. To maintain the protection, the corporation must be run in a

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    If you form a corporation for a business, it can become very confusing when the issue of running the actual business arises. For instance, what is the difference between shareholders and directors?

    The corporation is the oldest formal business entity we have. How old? Well, do you really care? It is old. The reason it has been with us for so long is it provides a unique protection for business owners. Simply put, individual owners are not responsible for the debts of the corporation. If a pharmaceutical company that is a corporation puts out a drug that hurts people, the people that have purchased shares in it on the stock exchange cannot be held liable for the resulting judgments.

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    between shareholders and directors?

    The corporation is the oldest formal business entity we have. How old? Well, do you really care? It is old. The reason it has been with us for so long is it provides a unique protection for business owners. Simply put, individual owners are not responsible for the debts of the corporation. If a pharmaceutical company that is a corporation puts out a drug that hurts people, the people that have purchased shares in it on the stock exchange cannot be held liable for the resulting judgments.

    This liability protection comes with a price. To maintain the protection, the corporation must be run in a

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    t has been with us for so long is it provides a unique protection for business owners. Simply put, individual owners are not responsible for the debts of the corporation. If a pharmaceutical company that is a corporation puts out a drug that hurts people, the people that have purchased shares in it on the stock exchange cannot be held liable for the resulting judgments.

    This liability protection comes with a price. To maintain the protection, the corporation must be run in a

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    oration. If a pharmaceutical company that is a corporation puts out a drug that hurts people, the people that have purchased shares in it on the stock exchange cannot be held liable for the resulting judgments.

    This liability protection comes with a price. To maintain the protection, the corporation must be run in a

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    nnot be held liable for the resulting judgments.

    This liability protection comes with a price. To maintain the protection, the corporation must be run in a formal manner. Meetings must be held, and certain positions must be filled or the entity can be considered a sham. A sham corporation loses the ability to protect its shareholders from liability.

    Two of the positions that are key within a corporation are those of shareholders and directors. Most people confuse these two roles, particularly in a small business. This is because a small business that has incorporate may have the same people filling both roles. There are, however, distinct differences.

    A shareholder is a person that owns part of the corporation. If I go out and buy 100 shares of Microsoft tomorrow, I am a shareholder

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