De facto corporation and corporation by estoppel

De facto corporation and corporation by estoppel are both terms that are used by courts in most common law jurisdictions to describe circumstances in which a business organization that has failed to become a de jure corporation (a corporation by law) will nonetheless be treated as a corporation, thereby shielding shareholders from liability. == De facto corporation == In order for a de facto corporation to be created, the following elements must exist: There must be an incorporation statute that lays out the various requirements under which legal incorporation can be accomplished; There must have been a good faith attempt to comply with the statute by the intended incorporators (for example, if the articles of incorporation were mailed to the appropriate office, but addressed to the wrong person, lost in the mail, or not filed by the corporation by the time the corporation began acting in an official capacity); There must have been an act made on the corporation's behalf by its purported officers or agents.

Source: Wikipedia — De facto corporation and corporation by estoppel (CC BY-SA 4.0)

De facto corporation and corporation by estoppel

De facto corporation and corporation by estoppel are both terms that are used by courts in most common law jurisdictions to describe circumstances in which a business organization that has failed to become a de jure corporation (a corporation by law) will nonetheless be treated as a corporation, thereby shielding shareholders from liability. == De facto corporation == In order for a de facto corporation to be created, the following elements must exist: There must be an incorporation statute that lays out the various requirements under which legal incorporation can be accomplished; There must have been a good faith attempt to comply with the statute by the intended incorporators (for example, if the articles of incorporation were mailed to the appropriate office, but addressed to the wrong person, lost in the mail, or not filed by the corporation by the time the corporation began acting in an official capacity); There must have been an act made on the corporation's behalf by its purported officers or agents.

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Source: Wikipedia "De facto corporation and corporation by estoppel" · CC BY-SA 4.0

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