de facto corporation
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
Category: Business, LLCs & Corporations → LLCs, Corporations, Partnerships, etc.
Category: Representing Yourself in Court
Category: Small Claims Court & Lawsuits

Nolo’s Plain-English Law Dictionary. . 2009.

de facto corporation
n.
   a company which operates as if it were a corporation although it has not completed the legal steps to become incorporated (has not filed its articles, for example) or has been dissolved or suspended but continues to function. The court temporarily treats the corporation as if it were legal in order to avoid unfairness to people who thought the corporation was legal.
   See also: de facto de jure ultra vires

Law dictionary. . 2013.

Look at other dictionaries:

  • de facto corporation — ➔ corporation * * * de facto corporation UK US noun [C] ► in the US, a corporation that is allowed to continue to exist, although it has not been officially made a corporation by law: »The court found that, when a person buys stock of a de facto… …   Financial and business terms

  • de facto corporation — A corporation in fact, an apparent corporate organization, asserted to be a corporation by its members, and actually acting as such, but lacking the creative fiat of the law an organization with color of law, exercising corporate rights and… …   Ballentine's law dictionary

  • de facto corporation — noun A business entity that is treated as a corporation for certain purposes despite its failure to meet all of the formal requirements imposed by law for a corporation to exist …   Wiktionary

  • de facto corporation —    (Latin: by fact by virtue of existence rather than right)    A company that functions as if it were a corporation, although it has not completed the legal process of becoming incorporated (e.g., by not yet filing its articles of incorporation) …   Business law dictionary

  • De facto corporation and corporation by estoppel — Companies law Company  …   Wikipedia

  • de jure corporation — A corporation formed in compliance with all applicable laws. Compare: de facto corporation Category: Business, LLCs & Corporations → LLCs, Corporations, Partnerships, etc. Category: Representing Yourself in Court Category: Small Claims Court &… …   Law dictionary

  • De Jure Corporation — A business that has fulfilled its requirements for formation according to the regulations for earning a state charter. De jure, meaning a matter of law, indicates that the company has been fully and legally chartered, and is therefore entitled to …   Investment dictionary

  • de facto — de fac·to 1 /di fak tō, dā , dē / adv [Medieval Latin, literally, from the fact]: in reality: actually these two constraints have been lifted, one de facto and one de jure Susan Lee de facto 2 adj …   Law dictionary

  • de facto — /diy faektow/ In fact, in deed, actually. This phrase is used to characterize an officer, a government, a past action, or a state of affairs which must be accepted for all practical purposes, but is illegal or illegitimate. Thus, an office,… …   Black's law dictionary

  • de facto — /diy faektow/ In fact, in deed, actually. This phrase is used to characterize an officer, a government, a past action, or a state of affairs which must be accepted for all practical purposes, but is illegal or illegitimate. Thus, an office,… …   Black's law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”