Companies planning to go public one day will typically form general corporations. In these blogs, we explain all you need to know.
How Important is Corporate Indemnification?
Monday, October 16, 2017
In a corporation, the scope of indemnification can vary, depending upon the terms of the corporation’s charter and bylaws, but only within certain parameters prescribed by the Delaware corporate law and judicial precedent... Read More
What Is a Non-Stock Corporation?
Tuesday, October 3, 2017
The common use of the non-stock corporation as the vehicle with which to obtain tax-exempt or non-profit status from the IRS has led to an interchangeability of the two terms, but this can be problematic... Read More
Everything You Need to Know About Stock Transfers
Tuesday, September 19, 2017
Typically, people hand a stock certificate to a shareholder and then document the exchange in the company's stock transfer ledger, which is utilized to properly record the transfer... Read More
Why Venture Capitalists Prefer Delaware C-Corps
Monday, September 4, 2017
The first requirement of every serious investor, angel investor and Venture Capitalist is the same: your company must be a Delaware C corporation before they will even consider investing in it... Read More
Advantages of a Delaware Close Corporation
Tuesday, August 22, 2017
A General Corporation can have as many shareholders as it sees fit. With a Close Corporation, there are restrictions on the sale or transfer of stock. The sale or transfer of stock in a Close Corporation can be restricted by the Right of First Refusal clause... Read More
What Is The Role of a President of a Corporation?
Monday, August 14, 2017
The person who is President of a company is in the highest position within an organization and, in some cases, takes on the title of Chief Executive Officer as well... Read More
What Is the Role of Officers in a Delaware Corporation?
Monday, May 8, 2017
Delaware law mandates that an officer of the corporation must be an individual and cannot be another entity; however, Delaware does not have restrictions in place about who can serve as an officer in a corporation... Read More
Delaware Corporation Directors Cannot Be Undisclosed
Tuesday, April 18, 2017
On the Delaware Annual Franchise Tax Report, all corporations must list their Company Name; Company Address; Names & Addresses of all Directors; Name & Address of one Officer... Read More
Delaware Blank Check Preferred Stock
Tuesday, April 11, 2017
Every Delaware General Corporation must have one class of common stock, but it can also have a second class of stock (or more) with customized terms for the different classes. The most popular second class of stock is called preferred stock because it can contain terms, negotiated between the Board of Directors and the recipient, that are preferred over the rights of common stockholders... Read More
Delaware General Corporation Structure
Tuesday, January 31, 2017
The Delaware general corporation is the strongest company structure in the U.S. It offers a means to raise capital, has three tiers of power and follows bylaws.
The bylaws of the company set forth the powers and the limits of power in each of the three tiers. Each group may have separate priorities, and they may clash occasionally... Read More