Revolutionary Concepts Inc (fka REVO)

[Brad S]

And, REVO shareholders own them.

Actually, they don't.

A corporation is a separate and distinct entity like any individual. Corporate life is granted by its state of incorporation or organization. Shares of stock issued by corporation are distinct packages of ownership rights in the property and assets of the corporation. But shareholders rights are limited. Limitations may be imposed by the issuing corporation, by the jurisdiction in which the corporation is incorporated or by U.S. regulatory laws.

A company is "controlled" by the voting rights assigned to each share of stock in accordance with the specific rights being sold by the Corporation.

Shareholders may own one or more "classes" of stock each class of which have different rights to division of profits or rights to corporate property in the event the corporation is dissolved and all debts and taxes are satisfied.

The corporation is not, under the laws of any State, property of the shareholders.

The corporation has its own independent existence and life. Some corporate powers are expressed while others are implied by operation of law.

That said, shareholders have rights to seek to dissolve the corporation, end the corporation and/or seek approval to sell the corporation or corporate property.

General details and powers of the specific corporation are expressed in the Articles of Incorporation publicly filed in the state where its central existence is claimed. Many states, notably, Deleware, Nevada and South Dakota have corporate laws particularly favorable as a means to derive state revenue.

Corporations have organizational rules called "by-laws" which are highly specific rules for conducting corporate business.

The company is not the "property" of shareholders in the sense that shareholders have any direct control.

Shares of ownership are personal property of their owners to intangible corporate rights.




Source(s):
U.C.L.A. (Econ); Loyola Law School