Business Regulations and Practices Essay Example | Topics and Well Written Essays - 500 words - 1

Business Regulations and Practices - Essay Example In this case, Oya is the President of Paka Corp. to enter into binding agreements on behalf of Paka. However, the agreements must be related to the daily business operations. They should fall within the object clause of Paka Corp. An officer of the corporation does not have the capacity to bind the corporation in anything outside the normal business operations. It is a fact that a corporate officer lacks the capacity to bind the corporation in matters irrelevant to the business. Oya involved the company in a personal loan, which is irrelevant to the business. Paka Corp. is in the business of selling computer services and not in the business of consigning personal loans regardless of the person involved. The fact that Oya is the company President does not change the operating powers of the corporation as outlined in the objects clause. The action of Oya to consign the Paka Corp. for a loan is ultra vires, which makes the whole transaction void. A shareholder owns share(s) in a corporation. Shareholders are entitled to a given number of benefits. Every state has business laws that govern the relationship between shareholders and the corporation (Bruno and Ruggiero 10). In general, shareholders enjoy several rights that are not influenced by the corporation bylaws or charter. Lucia is entitled to all the general rights of shareholders. In most corporations, a single vote is equivalent to one share unless specified otherwise in the corporation laws (Bruno and Ruggiero 13). Based on this fact, Lucia has a voting right in the company. The voting rights of a shareholder are not determined by the number of shares that he or she owns in the corporation. The number of shares also affects the voting power attached to each shareholder. Shareholders with many shares possess strong voting powers. Lucia has the right to attend shareholder meetings