Video: C Corporation Characteristics

In this lesson, Nick Palazzolo, CPA, unpacks the Ultra Vires Doctrine—often known as the Purpose Clause. He illuminates why this corporate law concept is vital for ensuring that a corporation sticks to its stated objectives or purpose as outlined in their articles of incorporation and what it means for shareholders and the corporation itself when ventures veer off-course. With practical examples and an exploratory dive into piercing the corporate veil, Nick clarifies when and why shareholders and directors might become personally liable for corporate activities. Additionally, he briefly touches on corporate bylaws and the particulars of raising capital through various securities, shedding light on equity, debt, and the unique characteristics of C Corporations when it comes to issuing stock.