Someone recently bought our

students are currently browsing our notes.

X

Forming A Corporation Outline

Law Outlines > Corporations Outlines

This is an extract of our Forming A Corporation document, which we sell as part of our Corporations Outlines collection written by the top tier of Georgetown University Law Center students.

The following is a more accessble plain text extract of the PDF sample above, taken from our Corporations Outlines. Due to the challenges of extracting text from PDFs, it will have odd formatting:

Forming a Corporation (See MBCA SSSS 2.01-2.07) A. Steps to Follow i. Step 1: Draft Articles/Certificate of Incorporation (MBCA SS 2.02; see also DGCL SS 102) a) MUST INCLUDE:
? Name of Corporation (MCBA SS 2.02(a)(1))
? Number of shares authorized to issue (MBCA SS 2.02(a)(2))
? Address of Corporations initial registered office and name of initial registered agent (MBCA SS 2.02(a)(3))
? Name and address of each incorporator (MBCA SS 2.02(a)(4))
? Anyone can sign it (purely administrative) b) MAY INCLUDE:
? Names of people who will be directors (MBCA SS 2.02(b)(1))
? Purposes of Corporation (MBCA SS 2.02(b)(2)(i))
? BUT default rule is that corporation can engage in "any lawful business" (MBCA 3.01(a))
? A Provision limiting liability of directors (MBCA SS2.02(b)(4)) BUT NOT
? (A) the amount of a financial benefit received by a director to which he is not entitled;
? (B) an intentional infliction of harm on the corporation or the shareholders;
? (C) a violation of section 8.33 [Unlawful Distribution];
? (D) an intentional violation of criminal law.
? A Provision permitting or making obligatory indemnification of a director for liability (MCBA 2.02(b)(5)) BUT NOT
? (A) receipt of a financial benefit to which he is not entitled;
? (B) an intentional infliction of harm on the corporation or its shareholders;
? (C) a violation of section 8.33 [Unlawful Distribution];
?????(D) an intentional violation of criminal law. ii. Step 2: Execute Articles of Incorporation and File with the Secretary of State iii. Step 3: Have an organizational meeting a) Adopt bylaws (MBCA SS 2.06) b) Elect Board of Directors c) Elect Officers d) Resolution adopting all acts e) Banking resolution
? Adopt such form as required by bank B. Choice of State of Incorporation i. Generally between the company's state of location and Delaware ii. FACTORS a) Tax rates and franchise tax rates b) Ease of operation c) Regulation of the sale of stock d) Payment of dividends

e) Existence of special provisions for close corporations f) Possible liability of shareholders for wages (rare) C. Professional Responsibility: Who is the Client?
i. ABA Model Rules of Professional Conduct a) An attorney-client relationship is either formed [1] explicitly by a formal contractual agreement or [2] implicitly by the client requesting, and the attorney performing, legal services for the client. Restatement (Third) of the Law Governing Lawyers SS 14. b) Once a lawyer-client relationship is established, the lawyer must "comply with obligations concerning the client's confidences and property, avoid impermissible conflicting interests, deal honestly with the client, and not employ advantages arising from the clientlawyer relationship in a manner adverse to the client." Restatement (Third) of the Law Governing Lawyers SS 16 c) Model Rule 1.2 - Scope of Representation and Allocation of Authority Between Client and Lawyer (Quoted)
? (a) Subject to paragraphs (c) and (d), a lawyer shall abide by a client's decisions concerning the objectives of representation and, as required by Rule 1.4, shall consult with the client as to the means by which they are to be pursued. A lawyer may take such action on behalf of the client as is impliedly authorized to carry out the representation. A lawyer shall abide by a client's decision whether to settle a matter. In a criminal case, the lawyer shall abide by the client's decision, after consultation with the lawyer, as to a plea to be entered, whether to waive jury trial and whether the client will testify.
? (b) A lawyer's representation of a client, including representation by appointment, does not constitute an endorsement of the client's political, economic, social or moral views or activities.
? (c) A lawyer may limit the scope of the representation if the limitation is reasonable under the circumstances and the client gives informed consent.
?????(d) A lawyer shall not counsel a client to engage, or assist a client, in conduct that the lawyer knows is criminal or fraudulent, but a lawyer may discuss the legal consequences of any proposed course of conduct with a client and may counsel or assist a client to make a good faith effort to determine the validity, scope, meaning or application of the law. d) Model Rule 1.4 - Communication (Paraphrased)
? (a) A lawyer has the duty (1) to promptly inform the client of any situation requiring informed consent, (2) to consult with the client about objectives and how they will be accomplished, (3) to keep the client reasonably informed, (4) promptly comply with the client's information requests, and (5) to "consult with the client about any relevant limitation on the lawyer's conduct when the lawyer knows that the client expects assistance not permitted by the Rules of Professional Conduct or other law."
?????(b) A lawyer shall explain a matter to the extent reasonably

Buy the full version of these notes or essay plans and more in our Corporations Outlines.