When the promoters fail to comply with some of the mandatory conditions precedent to incorporation, but substantially comply with the provisions taken as a whole, what kind of corporation is created?
a. a de facto corporation
b. a corporation by estoppel
c. a corporation quo warranto
d. a de jure corporation
The answer is not d.
The answer is C. Qu Warranto corporations are associatons that act as corporations within the state without legally being incorporated OR who fail to comply with the corporation laws of the state.
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. A corporation formed with a good faith attempt to comply with the law but which fails to meet a minor ...
Explains de facto corporations, corporation by estoppal, corporation quo warrant.