Corporations play a pivotal role, both at domestic and international level, in today’s interdependent economies.
The corporation is admirably suited to a wide variety of commercial objectives. It may be used, depending upon how its shares are organized and issued, as the wholly-owned subsidiary of a foreign corporation, as the business vehicle for one or more individuals, or as the preferred method for organizing a joint venture.
Forming of a company or corporation is called incorporation. Incorporation is done by registering articles of incorporation. Once the articles of incorporation have been issued/registered, the corporation must then begin the process of general organization of its structure and affairs. The structure will, to a large extent, be determined by the contents of the articles. Many of the matters that dictate the ongoing day-to-day operations of the corporation will be determined during the initial discussions of directors and shareholders.
Further, the shareholders of a closely held corporations may wish to enter into a shareholders agreement to regulate their respective rights and obligations.