Legal recognition of a corporation, even if the articles of incorporation for a corporation are not properly filed. To be granted de facto corporation status, there must be: a relevant incorporation statute, a good faith attempt to comply with it, and evidence that the business is being run as corporation.
Definition from Nolo’s Plain-English Law Dictionary
A business that has not completed all of the legal steps to become a corporation will be treated as a corporation by the court to shield the directors, officers, and shareholders who in good faith thought they were operating the business as a duly formed corporation. Compare: de jure corporation
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:14 pm