forming a corporation
1. incorporating & organizing
a. articles of incorporation
1. name (inc, co, corp)
2. duration
3. purpose
4. shares of stock (no. and classes)
5. officers
6. reqistered agent
b. organizational meeting: officers, bylaws, buy stock
2. ultra vires: invalidates transactions beyond purpose stated in aoi (now a practical nullity b/c eveyone puts “any lawful purpose”
3. prematurely commencing bsns. – must received at least $1k in ¢ for stock.
a. promoters
i. both know there is no corp. in existence yet:
A) default rule: A is party to the K
B) can change default rule to non-recourse A, best efforts A, novation, additional liability, etc.
ii. 3P doesn’t know ther is no corp. in existence yet:
A) promoter breached the implied W that corp. exists or
B) promoter laible b/c he knowingly misreps his authority
b. acceptance of the K:
i. outright acceptance
ii. implied acceptance (adoption): if you pay rent on new lease for a couple mos. and then quit to find better deal, too late; you’ve adopted the K
c. defective incorporation: both parties think aoi filed properly, but wrong!
i. certificate of incorporation issued? okay (even if improperly issued)
ii. no certificate? Texas might recognize a “Corp. by Estoppel”
1. when the 3P sues the “corp” for a jj, the 3P is later estopped from denying it exists (and vice-versa)
2. TMCLA “if a corp. makes a 3PK before incorporated, the 3P can’t get out of K by saying corp didn’t exist.
d. directors are personally liable for the $1k they are supposed to get before starting bsns (only liable for that amt.)
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