BM 162
HISTORY
ATTRIBUTES
• ARTIFICIAL BEING:
◦ fictitious
◦ given by law with rights, powers and liabilities usually accorded a natural person
◦ it can act only through directors (legislative body) who are chosen by stockholders; the
directors elect their officers (e.g. president, CEO, COO, VPs; executive body) and make
policies
◦ the officers select other agents and employees
CORPORATE NATIONALITY
(1) Incorporation rule: a recognized doctrine of corporate law that a private corporation is a
national citizen, resident or inhabitant of the country under whose laws it was created or
organized
(2) Control test: the citizenship or nationality of a corporation is determined by the citizenship of
its controlling stockholders
General Rule:
A corporation is considered as a legal entity until sufficient reason to the contrary appears.
Exceptions:
A corporation is regarded merely as an association of persons, when the notion of legal entity is
used to: