A corporation formed in substantial compliance with the incorporation statute and the required organizational procedures is a:
A) de facto corporation.
B) de jure corporation.
C) corporation by estoppel.
D) private corporation.

Question

Quizplus · Accepted Answer

A corporation formed in substantial compliance with the incorporation statute and the required organizational procedures is a de jure corporation. This means that the corporation has legal recognition and is properly formed under the law. A de facto corporation, on the other hand, is one that is not properly formed but may be recognized as legal due to certain circumstances.

A Corporation Formed in Substantial Compliance with the Incorporation Statute