The Insurance Locator

There are 2 types of companies:

1. Public corporation:
A public corporation is a legal entity that has a distinct personality for the regime fiscal and legal. Usually it starts by its original shareholders who provide the start-up cash or goods in exchange for their shares. The corporation may to be owned by a large number of shareholders.
The share holders to invest in the company has certain rights:
a. Voting Rights.
b. The right to choose directors.
c. The right to receive dividends.
d. The right to buy and sell shares in companies.
e. The right to inspect the books of companies.
f. The right to share the surplus on the wind-up of the corporation.
The liability of shareholders is limited to the sum total of the investment, except in cases of fraud and wrongdoing.

2. Private company:
Operations similar to the public corporation, except for shares of the corporation are owned by limited number of shareholders.

How to create a company
The creation of an enterprise requires the implementation of a charter or articles of incorporation to be supplied the appropriate provincial or federal regulators. If approved a letter of grant. A charter or articles of incorporation is a contract between the jurisdiction legal, the founders and shareholders.
The following information is needed to establish a corporation:
a. Company name.
b. Location its headquarters.
c. Purpose.
d. Authorized capital, the classes of equity shares held, number of shares of each class and their issue price.
e. All restrictions on the sale of shares or classes of shares.
f. Description of actions, attributes, designation, preferences, rights and conditions.
g. List of founders, including addresses and number of shares and the price paid for the shares.
h. List of top directors, including addresses.
i. Any additional information required by law.
To set up the company, the Board of Directors should submit and choose the company by the laws in their first meeting.

All companies are governed by the laws the corporation is elected at the first meeting of the corporation. The legislation is the code regulations and instructions for operation, duties and obligations of the Corporation and its officers. For more information on the above subject, please visit my homepage at:

Kyle J. Norton

target = "_blank" href = "http://lifeanddisabitityinsuranceunderwriter.blogspot.com/"> http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
href = "http://medicaladvisorjournals.blogspot.com/"> http://medicaladvisorjournals.blogspot.com/
href = "http://businessinsurancex.blogspot.com/"> http://businessinsurancex.blogspot.com/
All rights reserved. Any reproduction of this article must have all the links intact.

About the Author:

I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990

Article Source: ArticlesBase.com – Business Life Insurance Part X- Businesses Corporations and How to Set Up