What Is the Legal Definition of Corporate Citizenship?
The law is the body of law that governs conduct, with its exact definition subject to ongoing debate, primarily through government or social institution to govern behavior. It is commonly defined as the study and discipline of justice. There are several subdivisions of the law. Civil law, which include the courts, criminal law, and corrections, Intellectual property, and Adjudication (which include police power, trials, and justice).
Civil law deals with disputes between individuals or groups of persons. It also includes the process of defending a person’s rights in criminal proceedings against persons who are opposing parties. Criminal law, on the other hand, encompasses crimes that are punishable by the criminal laws of a country or state. Private law is a branch that deals exclusively with issues between private parties.
The debate between persons regarding the definition of personhood has resulted into some variation in the legal systems of various countries and states. Some jurisdictions assign personhood to human beings at birth while others identify a person as having legal personhood after they attain certain ages (usually 18 in most jurisdictions). Within the legal system, persons do not always have the same personal characteristics assigned to them by the law. For instance, it may be possible for a person with mental retardation to be declared mentally incapacitated for the purpose of carrying out one’s business; whereas, in another jurisdiction, a person with an abusive personality and history of violence may be able to stand trial for the same offense.
The definition of a legal personhood varies from one jurisdiction to the next. In some jurisdictions, persons and corporations are thought to possess certain intangible properties that are not considered as mere properties such as freedom, the right to wealth, and the like. In Canada, for instance, persons are said to possess “personhood” as regards the right to political freedom. On the other hand, corporations are considered to have “personhood” as regards the ability to act on their own. Still, in some jurisdictions, corporations are not considered to have any sort of individual rights or freedom and, therefore, they are not protected by law in any way.
When it comes to certain Canadian corporations, they retain the same legal characteristics as other corporations. A shareholder in a corporation is considered to be a juridical person. A share holder in a corporation is liable for the company’s debts if he or she fails to pay the dividend that has been declared by the shareholders. The shareholders can also be held personally liable for the actions of their corporation in a court of law. This is why corporations are created in the first place to prevent such situations from arising. However, a corporation can still be created in a free enterprise country so long as the law provides for its protection under common law.
In most jurisdictions, corporate citizenship provides that the corporations are considered to be separate legal personalities. In Canada, this is referred to as “enterprise citizenship.” This means that all persons who are interested in owning shares of a corporation are obliged to become shareholders (or members) of that corporation. There is no way to avoid this obligation because in most jurisdictions it is a prerequisite of being a shareholder. In addition, one cannot avoid paying tax on any income that accrues to the corporation through membership as the profits will be taxable.