This is “Corporate Powers and Management”, chapter 32 from the book The Legal Environment and Business Law: Master of Accountancy Edition (v. 1.0).
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After reading this chapter, you should understand the following:
Power within a corporation is present in many areas. The corporation itself has powers, although with limitations. There is a division of power between shareholders, directors, and officers. Given this division of power, certain duties are owed amongst the parties. We focus this chapter upon these powers and upon the duties owed by shareholders, directors, and officers. In Chapter 33 "Securities Regulation", we will continue discussion of officers’ and directors’ liability within the context of securities regulation and insider trading.