14 MANAGEMENT OF DAIRY PLANTS 



CORPORATION 



A corporation has been defined as an association of individuals 

 forming a body -which the law regards as an individual. The 

 members of such a body may change successively without affect- 

 ing its status as a legal unit. 



We may distinguish between business corporations organized 

 for pecuniary profits and corporations estabUshed for other than 

 pecuniary purposes, such as churches, fraternal organizations, 

 etc. The business corporation is gradually supplanting the 

 more risky form of copartnership. This body organized for 

 pecuniary profit is the one most commonly known by the name 

 of "Corporation" or "Business Corporation," being an organ- 

 ization of persons for the purpose of conducting some com- 

 mercial enterprise. 



Advantages of the Corporation. — Parties investing money 

 in business find that the corporation has several advantages 

 over the older form of organization. Such advantages are: 

 First, the permanency of the organization regardless of death, 

 insolvency, or change of its members; second, the limited lia- 

 bilities; third, the ease with which any person's interest in the 

 corporation may be disposed of or transferred to other parties. 



Creation of a Corporation. — A copartnership is created by 

 contract between two or more competent persons with the 

 purpose of carrying on some legal business. A corporation is 

 not created merely by agreement of the members, but must 

 receive permission from certain government officials to act as 

 a corporate being. Usually the secretary of state grants the 

 applicant a charter permitting the members to do business 

 under a corporate name and particularizing the rights and priv- 

 ileges granted to such a body. The number of members re- 

 quired for creating a corporation varies in the different states, 

 the minimum number in most states being from three to five. 



Before commencing any business except their own organiza- 

 tion, the members must adopt articles of incorporation which 

 must be signed and acknowledged by the incorporators. For 

 a corporation consisting of a number of members it is not neces- 



