DOCSLIB.ORG

Ananda Das Gupta Texts and Cases from the Indian Perspective

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Ananda Das Gupta Texts and Cases from the Indian Perspective India Studies in Business and Economics Ananda Das Gupta Business Ethics Texts and Cases from the Indian Perspective Business Ethics India Studies in Business and Economics The Indian economy is considered to be one of the fastest growing economies of the world with India amongst the most important G-20 economies. Ever since the Indian economy made its presence felt on the global platform, the research community is now even more interested in studying and analyzing what India has to offer. This series aims to bring forth the latest studies and research about India from the areas of economics, business, and management science. The titles featured in this series will present rigorous empirical research, often accompanied by policy recommendations, evoke and evaluate various aspects of the economy and the business and management landscape in India, with a special focus on India’s relationship with the world in terms of business and trade. For further volumes: http://www.springer.com/series/11234 Ananda Das Gupta Business Ethics Texts and Cases from the Indian Perspective Ananda Das Gupta Jnana Bharathi Campus Indian Institute of Plantation Management Bangalore, India ISBN 978-81-322-1517-2 ISBN 978-81-322-1518-9 (eBook) DOI 10.1007/978-81-322-1518-9 Springer New Delhi Heidelberg New York Dordrecht London Library of Congress Control Number: 2013950417 © Springer India 2014 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifi cally the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfi lms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifi cally for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Duplication of this publication or parts thereof is permitted only under the provisions of the Copyright Law of the Publisher’s location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the Copyright Clearance Center. Violations are liable to prosecution under the respective Copyright Law. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specifi c statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com) Foreword The dual goals of socially responsible investing (SRI) are to maximize returns while contributing to social well-being by factoring in nonfi nancial criteria. Also described as sustainable or ethical investing, SRI typically champions human rights, social justice, ecological responsibility, and corporate correctness. As this timely and instructive study shows religious institutions have a particular interest and a knack for SRI. Different forms of SRI have existed for a long time. Investor refusals to invest in tobacco, arms, and alcohol are just some of the historical examples. More recently, corporate greening and respect for the environment or sustainability are issues that have gained more attention. Investors have begun to realize the infl uence that they can wield on different organizations has led them to scrutinize both investment policies and investment vehicles and to use that infl uence to change or boycott, accordingly. Religious groups and investment vehicles are no longer foreigners to this turf. Why should smart CIOs be cognizant of this trend and the growing market and mind share it represents? There are two reasons: One has to do with investor appetites and conscience; the other has to do with capital markets themselves and how companies are being valued and rated. Where Is SRI Headed? In a word – upwards. The fi gure for Assets Under Management for SRI continues to rise. With strong growth in European and American markets and a sizeable market potential in Asia, projections from organizations like Robeco and Booz & Company are for 25 % annual growth and a 15 % share of all assets under management worldwide within the next 5 years. Whether or not, the market segmentation remains the same however may be another matter. Today, core SRI is one-third of broad SRI, the whole market being driven for the most part by institutional investors who hold v vi Foreword 92 % of the AUM for SRI. Bonds comprise 53 % of total SRI assets and equity just 33 % (fi gures for 2010). CIOs need to realize the size and dynamics of this market and the fact that a growing portion of the public and, most importantly, institutional investors are playing this game. The religious community globally is just one part of a much larger phenomenon. SRI Returns and Performance How does SRI compare with other investments? That’s a fair question. There is a temptation to consider SRI as an exercise in investor altruism, where perfor- mance is a secondary consideration and restriction in the investment universe leads to mediocre returns. Yet a recent study (by Leuven University) on the risk return of Belgian SRI funds and a 2011 study on French SRI funds (by Capelle-Blancard and Monjon) showed neither underperformance nor overperformance when compared to their non-SRI counterparts. Another study by Weber, Mansfeld, and Schirrmann in the USA showed that a selection of 151 SRI funds performed better than the MSCI World Index between 2002 and 2011. Their conclusion suggests, however, that in-depth analysis and manager skill is still the most important determinant of performance. If there is any issue, it is that there is no standard approach to integrating SRI into portfolio management. Meanwhile, SRI continues to demonstrate respectable returns and more. Executive-level access to capital markets, employee 401k plans, and increasingly a socially minded public are all demanding SRI. The trend will only continue which is why smart investors need to learn more. A Hedge Fund/SRI Standoff Pension funds, insurance companies, and high-net-worth individuals are all con- tri buting to the increasing demand for SRI. As this report demonstrates the religious community is also attracted. Hedge funds by comparison seem reticent. In Europe, for example, alternatives and hedge fund assets account for a modest 5.6 % of total SRI assets. Hedge fund managers have perhaps viewed SRI so far as an eccentric offshoot of alternative investments, while investors have not yet found the alignment they want between hedge funds and SRI. Their problem is not only with the nature of the sectors in which hedge funds invest. It is also with some hedge fund strategy practices like selling short, which restrict possibilities to engage management in the corporations or sectors concerned. Less engagement means less infl uence and in turn less chance for SRI to achieve its parallel objectives of returns and social impact. Foreword vii Opening the Floodgates SRI represents an increasingly important potential source of fresh capital for hedge funds and mutual funds. Conversely, if investors want to maximize their infl uence, hedge funds are a signifi cant lever they cannot ignore. Trading sectors and trading practices may both need adjustment for the two to work together well. The argument that short sales help SRI by reducing the stock price of companies that do not comply with social or environmental standards is shortsighted at best. SRI seeks to encourage compliant organizations, but not to deliberately damage the noncompliant. For instance, when the California Pension Fund withdrew from the Thai stock market in 2002, the Thai Stock Exchange created an SRI fund to protect the better employers from any negative impact. SRI has also shown itself to be buoyant in the recent global fi nancial woes, growing by 13 % in the USA between 2007 and 2011 compared to just 1 % for other professionally managed assets. SRI has the potential to provide hedge funds a useful diversifi cation of their portfolios and their investor base. In the same way that industrial corporations have often found that going green turns out to be advantageous not only environmentally but also economically, hedge funds may well fi nd that going “SRI” not only satisfi es investor demand for justice but brings direct fi nancial benefi ts as well. The academic, investor, and religious communities would all benefi t from a close reading of this report and the case studies, which are illustrative. Investors who comprehend this growing trend around “responsible investing” are no longer early adapters or social innovators. The market has caught up. As this report argues we need to gage where it is going over the coming decade. It is a mega-trend – too big to miss. Against this background the recent book of Prof. Ananda Das Gupta, entitled Business Ethics: Text and Cases from the Indian Perspectives , holds a clear posi- tion to discuss the issues pertaining to business ethics and SRI in the Indian context and cases and I think adds up signifi cantly to the body of knowledge. Research Professor, Yale University Theodore Roosevelt Malloch Pref ace The Prologue The Indian moral system has a metaphysical basis.
Load more

Recommended publications
  • Focus Suites Solutions & Services Limited
    Draft Prospectus Dated: December 11,2017 Please read Section 26 of the Companies Act, 2013 100% Fixed Price Issue FOCUS SUITES SOLUTIONS & SERVICES LIMITED Our Company was incorporated as “Focus Suites Solutions & Services Private Limited” at Bangalore as a Private Limited Company under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated July 18, 2006 bearing Corporate Identification Number U72200KA2006PTC039993 issued by Registrar of Companies, Karnataka. Subsequently, our Company was converted into a public limited company pursuant to shareholders resolution passed at Annual General Meeting of our Company held on September 29, 2017 and the name of our Company was changed to Focus Suites Solutions & Services Limited and a fresh certificate of incorporation consequent upon Conversion of Private Company to Public Company dated November 16, 2017 was issued by Registrar of Companies, Bangalore, Karnataka. The Corporate Identification Number of our Company is U72200KA2006PLC039993. For details of Incorporation, Change in the Name and Registered Office of our Company, please refer to chapters titled “General Information” and “Our History and Certain Other Corporate Matters” beginning on pages 57 and 128 of this Draft Prospectus. Registered Office: 2nd Floor, Kalpak Arcade, No. 46/17, Church Street, Bangalore, Karnataka 560001, India Tel. No.: +91 80 41757500; Fax No.: NA Corporate Office: C-108, Kanakia Zillion, LBS Marg, Gateway to BKC, Kurla West, Mumbai 400070, Maharashtra, India Tel. No.: +91 022 26540725; Fax No.: NA Contact Person: Nidhi Sharma, Company Secretary and Compliance Officer Email: [email protected]; Website: www.focus-suites.com PROMOTER OF OUR COMPANY: MAJESTIC MARKET RESEARCH SUPPORT SERVICES LIMITED THE ISSUE INITIAL PUBLIC ISSUE OF UPTO 36,08,000* EQUITY SHARES OF FACE VALUE RS.
    [Show full text]
  • The Shareholder As Ulysses: Some Empirical Evidence on Why Investors in Public Corporations Tolerate Board Governance
    INVESTORS' CHOICES THE SHAREHOLDER AS ULYSSES: SOME EMPIRICAL EVIDENCE ON WHY INVESTORS IN PUBLIC CORPORATIONS TOLERATE BOARD GOVERNANCE LYNN A. STOUTt This Article evaluates two possible explanationsfor why shareholders of public corporations tolerate board control of corporate assets and outputs: the widely accepted monitoring hypothesis, which posits that shareholders rely on boards primarily to control the "agency costs" associated with turning day-to-day control over the firm over to self-interested corporate executives, and the mediating hypothesis, which posits that shareholders also seek to "tie their own hands" by ceding control to directors as a means of attracting the extracontractual,firm- specific investments of such stakeholder groups as executives, creditors, and rank- and-file employees. Part I reviews each hypothesis and concludes that each is theoretically plausible and internally consistent, and that the validity of each theory must be established or rejected on the basis of empirical evidence. Part II evaluates the available empirical evidence, including new evidence on charter provisions of initial public offerings, and concludes that, as both a positive and a normative matter, corporate takeover law is consistent with the view that directorsare not just monitors, but also perform a mediatingfunction. Finally, Part III discussesfuture directions for empirical research, identifies some pitfalls to be avoided, and concludes that the current empirical evidence favors the mediating model. INTRODUCTION Shareholders are often described as the "owners" of corporations.' Since at least the days of Adolph Berle and Gardiner Means, however, t Professor of Law, University of California at Los Angeles School of Law; Principal Investigator, UCLA-Sloan Foundation Research Program on Business Organizations.
    [Show full text]
  • Avoiding a Limited Future for the De Facto LLC and LLC by Estoppel
    DURUIGBO FINALIZED_TWO 8/9/2010 11:48 PM AVOIDIG A LIMITED FUTURE FOR THE DE FACTO LLC AD LLC BY ESTOPPEL Emeka Duruigbo* I. INTRODUCTION Entrepreneurs, courts and scholars have long grappled with the problem of defects arising in the course or process of organizing a business. Promoters’ failure to follow all the steps designated by statute for the valid existence of their business entity of choice exposes the owners of the putative, but officially non-existent, entity to personal liability for contractual obligations incurred in its name or torts committed in the course of its business. 1 Other pertinent questions pertain to whether the “entity” * Associate Professor of Law, Thurgood Marshall School of Law (TMSL), Texas Southern University. Special thanks to Dean Dannye Holley and Professors Thomas Kleven and Asmara Tekle Johnson of TMSL for productive discussions and invaluable suggestions on earlier drafts. Many thanks for the helpful comments of Professor Joseph Karl Grant of Capital University Law School and participants at the Midwest People of Color Legal Scholarship Conference held on May 7-10 2009 at the University of Iowa College of Law, where a version of this article was presented. Further thanks to Jennifer Chidi (JD 2009) and David Stewart (JD 2009) for research assistance ably performed over the course of several semesters. Research for this article was supported by a generous grant from the summer stipend program at TMSL. 1. For example, notwithstanding the simplification of the process of incorporation, many incorporators fail to comply with the minimal statutory requirements for a valid incorporation of a business enterprise.
    [Show full text]
  • Spicy Entertainment and Media Limited
    DRAFT PROSPECTUS 100% Fixed Price Issue Please read Section 26 and 32 of the Companies Act, 2013 Dated 2nd March, 2016 SPICY ENTERTAINMENT AND MEDIA LIMITED (CIN- U22219WB2012PLC188312) Our Company was originally incorporated as “Lahoti Entertainment & Media Limited” in Kolkata, West Bengal as a Public Limited Company under the provisions of the Companies Act, 1956 vide Certifi cate of Incorporation dated 15th November, 2012 bearing Registration Number: 188312 issued by the Registrar of Companies, Kolkata, West Bengal and having Certifi cate for Commencement of Business dated 11th December, 2012. Subsequently, the name of Our Company was changed to “Spicy Entertainment and Media Limited” and a fresh Certifi cate of Incorporation dated 7th November, 2014 issued by the Registrar of Companies, Kolkata, West Bengal. The Corporate Identifi cation Number of our Company is U22219WB2012PLC188312. For further details of incorporation, change of name and registered offi ce of our Company, please refer to chapter titled “General Information” and “Our History and Corporate Structure” beginning on page 36 and 120 respectively of this Draft Prospectus. Registered Offi ce: 4, Fairlie Place, HMP House, 4th Floor, Room No – 408, Kolkata – 700 001, West Bengal Tel: +91-33-40088181 / +91 8820500005 / +91 8820400004 Email: [email protected]; Website: www.spicyy.in Company Secretary & Compliance Offi cer: Ms. Neha Barnwal PROMOTERS OF OUR COMPANY: M/S. PINK LADY MERCHANDISE PRIVATE LIMITED & MR. ANINDYA BIKAS DATTA THE ISSUE PUBLIC ISSUE OF 48,20,000 EQUITY SHARES OF RS. 10 EACH (“EQUITY SHARES”) OF SPICY ENTERTAINMENT AND MEDIA LIMITED (“SEML” OR THE “COMPANY” OR THE “ISSUER”) FOR CASH AT A PRICE OF RS.
    [Show full text]
  • Governance Watch
    Monthly Newsletter January 2015 Governance Watch Monthly Newsletter SEBI Discussion Paper - Amendments for Restrictions on Wilful Defaulters SEBI floated a discussion paper on proposed amendments to regulations framed under SEBI Act, 1992 for Imposing Restrictions on Wilful Defaulters. Following are the rec- ommendations made to impose restrictions on willful defaulters from accessing the capital market: Recommendation 1 No issuer shall make a public issue of equity securities, if the issuer, its pro- moter, group company or director of the Issuer of such securities, is in the list "Whether you think you can or whether you think you can’t, you’re of the Wilful defaulters, published by the Reserve Bank of India. right” - Henry Ford Recommendation 2 Inside this Issue: No issuer shall make a public issue of the debt securities, if the issuer, its pro- moter, group company or director of the Issuer of such securities, is in the list SEBI Discussion Paper - of the Wilful defaulters, published by the Reserve Bank of India or it is in de- Amendments for Restric- fault of payment of interest or repayment of principal amount in respect of tions on Wilful Defaulters debt instruments issued by it to the public, if any. SEBI Discussion Paper - Reclassification of Promot- Recommendation 3 ers as Public No issuer shall make a public issue of non-convertible redeemable preference shares , if the issuer, its promoter, group company or director of the Issuer of On Focus: Sustainability Reporting such securities, is in the list of the Wilful defaulters, published by the Reserve Bank of India or it is in default of payment of interest or repayment of princi- About Us pal amount in respect of debt instruments issued by it to the public, if any.
    [Show full text]
  • MCO-10-BLOCK-01.Pdf
    The source materials used in this block are designed and developed by e-pg pathshala, a joint initiative of MHRD, Govt. of India and NCERT under NMEICT (Executed by UGC). Some of the materials are also borrowed from openstax.org. Master Of Commerce (MCOM) MCO-10 Corporate Legal Framework Block-1 Companies Act 2013 Unit-1 Broad Features of ICA 2013 Unit-2 Types of Companies Unit-3 Incorporation of Company Unit-4 Memorandum of Association Unit-5 Articles of Association & Prospectus UNIT-1 BROAD FEATURES OF ICA 2013 Structure: 1.0 Objectives 1.1 Introduction 1.2 Indian Companies Act 2013 1.3 Objectives 1.4 Nature and Scope 1.5 Machinery for Administration 1.6 Meaning & Definition of Company 1.7 Company and Body Corporate 1.8 Company and Corporation 1.9 Summary 1.10 Keywords 1.11 Further Readings 1.12 Terminal Questions 1.0 OBJECTIVES After studying this module: ● You shall be able to Know the meaning of company ● Learn the broad features of the Companies Act 2013 ● Understand how the Companies Act is implemented 1.1 INTRODUCTION In general, company means an association of persons for a common object. The term ‘company’ is derived from the Latin word “com” means with or together, panis means bread, and originally referred to an association of persons who take their meals together. Company as a form of business is traditionally called ‘joint-stock company’. “By a company is meant an association of many persons who contribute money or money’s worth to a common stock and employ it for a common purpose.
    [Show full text]
  • Mandatory Disclosure As a Solution to Agency Problems Paul G
    Mandatory Disclosure as a Solution to Agency Problems Paul G. Mahoneyt INTRODUCTION Most sellers of goods or services are not legally compelled to provide particular information about their products to potential buyers; they must merely avoid making false claims. One impor- tant exception relates to securities. Firms that issue securities in the public markets must provide affirmative disclosures about the securities and the issuer. This is true not only in the United States, but in most developed countries. What accounts for the distinction between securities and other products? Surprisingly few attempts have been made to justify the distinction on efficiency grounds. The initial approach of academ- ic economists to the United States securities laws was to marshal empirical evidence that investors were, or were not, better off after the enactment of these laws.' In response to the empirical debate, a small but influential theoretical literature has devel- oped on the efficiency of mandatory disclosure.2 That literature identifies the goal of mandatory disclosure as helping market participants to determine prices for securities that accurately t Assistant Professor of Law, University of Virginia School of Law. I thank Barry Adler, Mike Dooley, Jill Fisch, Reinier Kraakman, Ed Kitch, Julia Mahoney, Eric Orts, Steve Thel, George Triantis, Bill Williams, and workshop participants at the University of Pennsylvania Law School and the University of Toronto Faculty of Law for comments. Andrew Brownstein and Jennifer Mink provided excellent research assistance. ' See George J. Stigler, Public Regulation of the Securities Markets, 37 J Bus 117 (1964) (arguing that returns to investors in new issues were unaffected by securities laws); Irwin Friend and Edward S.
    [Show full text]
  • A Brief History of Delaware's General Corporation Law of 1899
    Delaware Journal Of Corporate Law VOLUME 1 1976 NUMBER 2 0 Copyright 1976 by the Delaware Law School of Widencr College, Inc. A BRIEF HISTORY OF DELAWARE'S GENERAL CORPORATION LAW OF 1899 By JOEL SELIGMAN* TO INAUGURATE the Delaware Journal of Corporate Law, Wilmington attorney S. Samuel Arsht published "A History of Delaware Corporation Law."' It is a curious document, at once candid and opaque. Arsht began with an acknowledgment of recent criticisms of the Delaware General Corporation Law and his anxiety that insufficient "emphasis has been given to the positive aspects of the development of the Delaware law."'2 He then crisply described the 189 year history of Delaware corporation law as one intermittent with concern for "the interests of American business and industry" and scandal, in both instances leavened by the fairness of the Delaware judiciary. In Arsht's view, the history of Delaware corporation law can be divided into two parts: first, a relatively inconsequential period dating from 1786 when Delaware issued its first special charter to 1899 when Delaware enacted its present General Corporation Law; and second, the history from 1899 to the present under the General Corporation Law. The earlier phase is particularly one of mystery. On February 2, 1786, Delaware issued its first special charter to the Colonial Bank of America.' This special act was followed by an increasing number of subsequent special incorporation acts through 1875 when the Consti- tution of 1831 was amended to grant the legislature the power "to enact * Mr. Seligman is a member of the California bar and of the Corporate Account- ability Research Group located in Washington, D.C.
    [Show full text]
  • Project Report on “Financial Scams in India” Bachelors Of
    PROJECT REPORT ON “FINANCIAL SCAMS IN INDIA” BACHELORS OF MANAGEMENT STUDIES (BMS) UNDER GUIDANCE OF PROF. SATHISH IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE OF BACHELOR OF MANAGEMENT STUDIES (BMS) BY SONIA SURESH S.I.C.E.S DEGREE COLLEGE OF ARTS, COMMERCE & SCIENCE AMBERNATH (W) 421505 UNIVERSITY OF MUMBAI S.I.C.E.S DEGREE COLLEGE OF ARTS, COMMERCE & SCIENCE CERTIFICATE OF PROJECT COMPLETION Certified that the Project Report titled Financial scams in India has been completed satisfactorily in partial fulfillment of B.M.S course of the University of Mumbai, Mumbai for the academic year 2015-2016 by Sonia Suresh a student of “S.I.C.E.S DEGREE COLLEGE” Ambernath. Place: Ambernath Principal DECLARATION I SONIA SURESH, student of S.I.C.E.S COLLEGE OF ARTS, COMMERCE & SCIENCE T.Y.B.M.S hereby declare that I have completed this project on Financial Scams in India in the academic year 2015- 2016. The information submitted is true and original to the best of my knowledge. SIG NATURE OF THE STUDENT (SONIA SURESH) DATE: SEEN BY INTERNAL EXAMINER: ___________________ SIGNATURE: ___________________ EXTERNAL EXAMINER: ___________________ SIGNATURE: ___________________ ACKNOWLEDGEMENT The class assignments and the two hundred marks project is an essential part of the BMS program and I am deeply grateful to the University of Mumbai to have introduced this project as a of our curriculum. The successful completion of the project on “FINANCIAL SCAMS OF INDIA” Has been a great learning experience. I am also grateful to Sathish sir, for having given me guidance and help for the successful completion of my project.
    [Show full text]
  • Chapter 23 "Corporation: General Characteristics and Formation"
    This is “Corporation: General Characteristics and Formation”, chapter 23 from the book The Legal Environment and Foundations of Business Law (index.html) (v. 1.0). This book is licensed under a Creative Commons by-nc-sa 3.0 (http://creativecommons.org/licenses/by-nc-sa/ 3.0/) license. See the license for more details, but that basically means you can share this book as long as you credit the author (but see below), don't make money from it, and do make it available to everyone else under the same terms. This content was accessible as of December 29, 2012, and it was downloaded then by Andy Schmitz (http://lardbucket.org) in an effort to preserve the availability of this book. Normally, the author and publisher would be credited here. However, the publisher has asked for the customary Creative Commons attribution to the original publisher, authors, title, and book URI to be removed. Additionally, per the publisher's request, their name has been removed in some passages. More information is available on this project's attribution page (http://2012books.lardbucket.org/attribution.html?utm_source=header). For more information on the source of this book, or why it is available for free, please see the project's home page (http://2012books.lardbucket.org/). You can browse or download additional books there. i Chapter 23 Corporation: General Characteristics and Formation LEARNING OBJECTIVES After reading this chapter, you should understand the following: 1. The historical background of the corporation 2. How partnerships compare with corporations 3. What the corporation is as a legal entity, and how corporate owners can lose limited liability by certain actions 4.
    [Show full text]
  • Chapter 43 Corporation: General Characteristics and Formation LEARNING OBJECTIVES After Reading This Chapter, You Should Understand the Following
    that the trend toward limited liability gives bad actors little incentive to behave ethically because the losses caused by their behavior are mostly not borne by them that too few modern professional partnerships will see any need for malpractice insurance One of the advantages to the LLC form over the sub-S form is in the sub-S form, corporate profits are effectively taxed twice. the sub-S form does not provide “full-shield” insulation of liability for its members. the LLC cannot have a “manager-manager” form of control, whereas that is common for sub-S corporations. the LLC form requires fewer formalities in its operation (minutes, annual meetings, etc.). SELF-TEST ANSWERS 1. d 2. e (that is, a and d) 3. d (Choice a is wrong because as a secured creditor Puentes can realize on the collateral without regard to other creditors’ payment.) 4. c 5. d [1] Under ULPA-2001, the general partner has limited liability. Chapter 43 Corporation: General Characteristics and Formation LEARNING OBJECTIVES After reading this chapter, you should understand the following: 1. The historical background of the corporation 2. How partnerships compare with corporations Saylor URL: http://www.saylor.org/books Saylor.org 1513 3. What the corporation is as a legal entity, and how corporate owners can lose limited liability by certain actions 4. How corporations are classified The corporation is the dominant form of the business enterprise in the modern world. As a legal entity, it is bound by much of the law discussed in the preceding chapters. However, as a significant institutional actor in the business world, the corporation has a host of relationships that have called forth a separate body of law.
    [Show full text]