Corporation

A corporation is a legal entity that is separate and distinct from its owners, known as Shareholders. It has the ability to enter into contracts, sue and be sued, own Assets, and incur liabilities. Corporations are created under the laws of a specific state or country and are governed by a Board of Directors. They provide limited Liability protection to their Shareholders, meaning that the personal Assets of the Shareholders are generally protected from the corporation’s debts and liabilities.

Examples of corporations include:

• Apple Inc. – A technology company known for its consumer electronics and software.
• Coca-Cola Company – A beverage corporation famous for its soft drinks.

Notable cases involving corporations include:

• Citizens United v. Federal Election Commission (2010) – A landmark Supreme Court case that ruled corporations have the right to free speech under the First Amendment, allowing them to spend unlimited Money on political campaigns.
• Smith v. Van Gorkom (1985) – A case where the Delaware Supreme Court held that a Board of Directors breached their fiduciary duties when they failed to adequately inform themselves before approving a merger.