For Samantha, Ashley, and George who would wish to organize a corporation named SAG Computer Consultants, the first thing that they must do is to reserve the name of the company which is done at the registrar of company. The registrar of company therein must ensure that the name is without malice or any piracy whatsoever. The registrar must also ascertain that the name has not been adopted by anyone in the registration list. Next they need to enter into a profound agreement on the best way to run the business. This means that they have to for a legal agreement and accept their position as the promoters of the company. The third step is to establish the documentation of the memorandum of association and t articles of association which will contain the way the company is to be run. Lastly, the group should file an application of incorporation with the registrar of company requesting for the incorporation of the company.
Shareholders’ derivative lawsuits are lawsuits are filed by the shareholders against a third party. The third party in question is mostly the management or any insider in the corporation. The lawsuits are always instituted in the event that that the company management has failed to institute it the suit. The management of the cooperation is always charged with the mandate of bringing on board the suits and probably defending it to its very end.
The board of directors is charged with the mandate of making that the strategic goals and objectives of the firm are formulated and well structured for implementation. The role of shareholders is to oversee on the overall performance of the company with keen concern on their interest of wealth maximization. Therefore the discipline in the working environment is created by the directors while the advent of needed to maximize profits for the firm is accentuated by the shareholders of the firm. The directors therefore directly coagulate with the shareholders in the corporation.