Free

The Corporate Process - Research Paper Example

Comments (0) Cite this document
Summary
The Corporate Process (Your Name) (Institution Affiliation) The Corporate Process Introduction This paper will cover the duties conducted by important entities of a corporation; the paper even discusses the differences between publicly held corporations and closed corporations…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.9% of users find it useful
The Corporate Process Paper
Read TextPreview

Extract of sample "The Corporate Process"

The Corporate Process Affiliation) The Corporate Process Introduction This paper will cover the duties conducted by important entities of a corporation; the paper even discusses the differences between publicly held corporations and closed corporations. The three most important entities of a corporation are the shareholders, directors and officers. Duties of Directors and Officers of Corporations The officers and directors of an organization are referred to as fiduciaries of an organization, being fiduciaries; they are liable to perform two main duties (Becker, 2011, p.6). Fiduciary refers to an individual who has a duty to operate or act on another’s behalf. Fiduciary relationship is created when one trusts an individual and that individual performs duties on his or her behalf. The relationship that a director or officer has with the organization and the shareholders, is recognized as a fiduciary relationship. The shareholders and the organization have confidence and trust in the officers and the directors and the officers and directors are responsible to carry out duties and task on shareholders and organizations behalf. The fiduciary duties that all officers and directors have to carry out on behalf of shareholders and organizations are duty of loyalty and care. According to duty of care, directors are liable to act in good faith and make use of prudent business judgment while making decisions or conducting business for their organization. Good faith refers to the honesty and sincerity that directors and officers have to show while conducting business. Prudent business judgment refers to careful and analytical decisions made by directors and officers. Directors should be very careful while conducting business and making decisions on behalf of the organization and shareholders; his/her degree of care should be as high as the degree of care he/she takes in making personal decisions. Directors should have all the information required while making decisions and they should apply all their training and education in conducting business. If directors do not exercise duty of care in their operations, they become answerable to shareholders and the corporation they are working for. Directors are even answerable and held responsible for conducting mismanagement and negligent of corporate employees if they do not supervise the activities of their subordinates (officers). The directors and officers are even responsible for conducting their duties with faithfulness. The process of carrying out duties with faithfulness is recognized as director’s duty of loyalty (Overton, 2002, p.29). While directors and officers conduct duty of loyalty, they have to forego their own self interest for the interest of the organization. Under the duty of loyalty, directors are obstructed form using organization’s resources and information for personal use. In certain cases, the director has self interest in certain transactions of their organization. In these cases, the director has to completely disclose his self interest and has to keep out of voting for these business transactions. The directors have to make various decisions for the organization, directors cannot be held responsible for the outcomes of those decisions if those decisions are made honestly. This rule is recognized as the business judgment rule. The rule provides immunity from responsibility to directors and officers if they have exercised duty of care and loyalty in making decisions for the organization. Duties of Shareholders of Corporations Shareholders are mostly not allowed to take part in day to day running of corporations; their main duty includes selection of board of directors (BOD) for the organization. There are two kinds of shareholders, minority and majority. If the majority share holders use their power to conduct fraud against minority shareholders, they are held responsible. The majority shareholders have a fiduciary duty towards minority shareholders and corporations. This means that they have to be loyal and fair to the minority shareholders and corporations while they deal business of for the corporation or with the corporations. Publicly held vs. closed corporation Corporations are categorized into two parts, publicly held or public corporations and closely held or close corporations. In case of close corporations, there are very limited numbers of private individuals that own and operate the company, the shares owned by these individuals cannot be sold on stock market or to the public, and in several close corporations; shareholders reach an agreement of not selling their shares to anyone (Li, 2007, p.99). In case of publicly held or public corporations, there are huge numbers of shareholders, the shares of the corporation are openly sold in the stock exchange and their shares are easily transferable. Conclusion The directors and the officers have a duty to carefully, sincerely and faithfully conduct business for the corporation and the major share holders have a fiduciary duty towards minor shareholders. References: Becker, B., Stro?mberg, P., & Harvard Business School. (2011). Fiduciary duties and equity-debtholder conflicts. Boston: Harvard Business School. Li, X. (2007). A comparative study of shareholders' derivative actions: England, the United States, Germany, and China. Deventer: Kluwer. Overton, G. W., Frey, J. C., & American Bar Association. (2002). Guidebook for directors of nonprofit corporations. Chicago, Ill: American Bar Association, Section of Business Law. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Corporate Process Paper Research Example | Topics and Well Written Essays - 750 words”, n.d.)
The Corporate Process Paper Research Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/law/1443548-the-corporate-process
(The Corporate Process Paper Research Example | Topics and Well Written Essays - 750 Words)
The Corporate Process Paper Research Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/law/1443548-the-corporate-process.
“The Corporate Process Paper Research Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/law/1443548-the-corporate-process.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Corporate Process Paper

Decision-Making Process Paper

...making model taught by the textbook. During my decision making I did not generate an official list of alternative solutions. My solutions were limited to staying or leaving. I did not make a deep analysis of my alternatives. In a way I was impulsive and I made the decision that felt right at the moment. The decision making model depicted in the textbook could have been very valuable for me when I made the decision. I did not identify the problem adequately. Identifying a problem is the critical first step in the problem solving process (Monash, 2012). Based on my emotions I choose to leave a job that was paying me a very good hourly rate. I could have chosen to stay longer in order to accumulate capital by saving a...
3 Pages(750 words)Essay

EA Enables Process Paper

...?ENTERPRISE ARCHITECTURE (EA) Enterprise Architecture (EA) Affiliation Table of Contents Enterprise Architecture (EA) 3 The EA program supports the other IT management processes of an organization 5 Enterprise Architecture supports system development life cycle (SDLC) 5 Conclusion 6 References 6 Introduction Enterprise Architecture (EA) is a complete structure that is used to control and bring into line all the Information Technology (IT) assets, staff members, operations, and projects with its operational characteristics within an organization. In fact, the enterprise architecture defines the way how information technology will be used in an organization to support the business operations and offer assistance to the...
3 Pages(750 words)Essay

Mental Process Paper

...? Mental Process Paper MENTAL PROCESS PAPER The premise of this paper is to discuss mental processes. The paper seeks to compare and contrast the four styles of creative thinking and how they influence decision making in an environment. It will also seek to discuss the forces that influence mental modes and mindsets, while also including examples of how they limit the process of decision-making. Finally, it will analyze the most commonly used mental modes and mindsets that aid in the process of decision making in the workplace and how they influence decision-making. Mental...
4 Pages(1000 words)Research Paper

Mental Process Paper

...? Mental Process Mental Process Introduction: Decision-making is the most important aspect of running businesses successfully. Managers are trained to make good decisions for the organization. Many factors and processes contribute to carry out good decisions. Creative intelligence assists viewing new situations and plan strategies to resolve issues. Mental process is a procedure of thinking strategies to practically implement the designed plans. The mental process includes four styles of creative intelligence and five forces of mental model that play role during decision-making processes of the organizations. In this paper, we shall discuss the influence of five forces on the basic development of mental models and mindsets... , and a...
4 Pages(1000 words)Essay

Communication Process Paper

...of the organization, from the lowest ranks to the higher echelons of the hierarchy, could send or receive messages without eminent barrier. All the key parts of the communication process are deemed to be integrated within the open communication pattern that is encouraged within the work setting. As such, corporate messages or correspondences could be sent from the top – down, or from the bottom – up without necessarily observing restricted protocols (for instance, an office clerk could not directly send a formal letter to the CEO because he or she needs to forward the letter to his or her superior; who in turn would decide whether the message is to be communicated to the proper channels along the...
3 Pages(750 words)Essay

Legal Process Paper

...Legal Process John is en d to file a discrimination suit against his employer if he believes his employment rights may have been violated. However, before filing a law suit in the Courts, his claim should first be filed with the Equal Employment Opportunity Commission. The first step in the process is thus to file a charge of discrimination with the EEOC. This requires the grieved party, in this case John, to fill up a questionnaire addressing the specific nature of the complaint. If there is any correspondence involves that supports the complaint, that may also be included in lieu of the questionnaire, provided it contains enough information about the nature of the complaint. In filing a charge, John...
3 Pages(750 words)Essay

Legal Process Paper

.... For example, is the employer a public agency, a public utility or a private employer? Is the ownership of the business small and locally based, or is it owned and controlled by a large holding company or corporation from another community? [] 3. What is the reputation of the employer in the community? [] 4. Does the employees discharge fit a perceived pattern of conduct by the employer? In other words, is counsel or client aware of any other former employees who were similarly treated by the employer? [] 5. Do the facts and circumstances suggest the possibility of personal or individual liability against any of the clients coemployees and agents of the employer? [] F. Litigation concerns [] 1. Attorneys fees:...
3 Pages(750 words)Essay

Mental Process Paper

...Creative intelligence is a term used to refer to the framework that uses intelligence to assure creativity, which turn produces innovation (Samet, 2010). As a result, creative intelligence does not cater for imitation, mimicry or duplication, but for originality in coming up with ideas and implementing decisions. Intuition Intuition as an aspect of creative intelligence in the decision making process depends on the experiences of the individual (Innovative Thinker, 2010). The style refers to past events in order to influence the present in terms of avoiding mistakes. This only happens if historical significance of the past events is considered and regarded appropriately. In this way, decision making in organization...
2 Pages(500 words)Research Paper

Entrepreneural process paper

...Entrepreneurial Process Entrepreneurial Process Entrepreneurship can be defined as the art of initiating innovation and integrating it into a business situation for economic gains. Entrepreneurs use various approaches to analyze market needs, encourage new-idea generation, and recognize business opportunities. Two of the most crucial entrepreneurial approaches include SWOT and PESTEL analyses. PESTEL analysis entails the analysis of external factors impacting the business i.e. political, economic, social, and technological, environmental and legal factors. The results of the analysis provide the macro-environmental factors that the business should consider in analyzing the market needs for generation of...
1 Pages(250 words)Essay

Corporate Governance

...Corporate Governance: A Literature Review By Affiliation Introduction Corporate governance refers to a set of rules or principles which areused by companies to control and direct their businesses. The basic objective of corporate governance is to address the distribution of responsibilities and rights among different stakeholders with a corporation. In this scenario, different companies can have different stakeholders for instance, managers, board, shareholders and a variety of other stakeholders (Carpenter & Sanders, 2009, p. 443). This paper presents a review of the literature on corporate governance. This paper...
6 Pages(1500 words)Literature review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic The Corporate Process Paper for FREE!

Contact Us