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From Mantron Corp Wiki

Definition

Corporation is referred to as legal body made under the state’s laws. It is exclusive legal entity which exercise it own privileges and liabilities different from the privileges and liabilities of its members. If speaking of the kind of corporation then there are many different kinds of it and most are for business sake. Charter is the manner of establishing early corporations. There is one significant characteristic of corporation however this isn’t really accepted universal, this is called limited liability. This characteristic applies when the corporation experience bankruptcy. Upon the failure of it, shareholders lose all the money they have invested and employees would also lose their jobs however they would no longer be asked to pay remaining debts to the creditors. There are other characteristic aside from the mentioned limited liabilities earlier, these are legal personality, transferable shares and centralized management under a board structure. In spite not being human by nature, it still exercises right and responsibilities. Corporation respects human rights against any human as even the state. Moreover, they can also commit human rights violation if they have done something wrong. In addition, corporations can even be convicted of criminal offenses, such as fraud and more corporations failed and closed either by statutory operation which is ordered by court or voluntary closed or dissolve themselves which rely on the shareholders. When creditors forced the dissolution of the corporation due to credits that they aren’t able to pay then naturally the corporation would fail and die.

Background

Corporation comes from the Latin word corpus which means body or a body of people. Such type of governing body which are usually used for business purposes and acquiring legal rights begin in Rome and India during Maurya Empire. Churches integrated to the local governments like for example the relation between the Pope and the City of London Corporation during the medieval age in Europe. It points out that incorporation would still survive even though the members of it no longer exist. Stora Kopparberg mining in Sweden was considered as the oldest known commercial corporation in the whole world. This corporation was said to gain charter from King Magnus Eriksson in year 1347. Chartered corporations coming from several European nations led to colonial ventures like Dutch East India Company or the Hudson's Bay Company, and have influenced much on the history of corporate colonialism.

History

It was in the 17th century when chartered company has emerged from progenitors. Dutch East India Company won the battle to Portuguese forces. Later on they established Dutch East India Company’s base in the Moluccan Islands so as to gain profit from the demands that European are asking such as spices. During that time the proof of share ownership on Dutch East India Company were paper certificates.

Regulations

Shareholders in a corporation have limited liabilities for the debts and responsibilities of the corporation. Hence, if there is a tendency for the corporation to fail their losses will not exceed the shares they have given to the corporation.