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Incorporated and recognized as a legal entity, a corporation has
the authority to engage in any legal activity that the directors
may from time to time deem to be in the best interests of the corporation
or transact any business as permitted by law and as defined in its
own corporate charter and by-laws. For example, a corporation may
sue and be sued, enter into contracts, buy and sell both real and
personal property anywhere in the world, etc.
In most jurisdictions, an officer, director, employee or designated
agent of the corporation can appear in court on behalf of the corporation.
A properly maintained corporation (i.e. absence of fraud or
Alter Ego) is solely responsible for its debts. As a
rule, shareholders, directors, and officers cannot be assessed for
the corporations liabilities. If the corporation suffers losses,
the corporation itself must bear those losses to the extent of its
own resources, and not the personal assets of the principals. An
individual may be held liable for the debts of the corporation where
the individual has personally guaranteed the corporations debt.
A corporations lifespan may be perpetual. The death or incapacity
of the directors, or officers of the corporation does not affect
its continuity of life.
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