Steve Good
afternoon. I'd like to see Mr. Jackson. We have an arrangement with him. My
name is Mr. Watson.
Secretary Just a minute, please. I'll let him know you are here.
Steve Thanks.
Secretary Mr. Jackson is waiting for you. Do you know where his office is?
Steve Oh
sure, thank you.
Jackson Hello,
Steve, it's so nice to see you. Sit down, Please.
Steve Thanks,
Nick. How are you getting on?
Jackson Quite
all right, thanks. And what about you?
Steve Everything
is all right too. In fact I want to talk to you about my business.
Jackson Oh,
I'll be glad to do something for you.
Steve Well,
Nick. I need some legal advice. John and I are thinking of incorporating.
Jackson You
are going to expand, aren't you? It seems that your partnership has been
doing very well.
Steve Oh,
yes. We have a success. Now some businessmen are interested in investing with
us. So could you explain me what sort of legal procedure I have to follow to
form a corporation?
Jackson At
first you have to apply for a corporate charter.
Steve Well?
Jackson Let
me get this straight. You want to issue and sell stock in exchange for
investment capital, don't you?
Steve Exactly
Jackson After
you obtain the charter the stockholders, as owners, hold a meeting to
organize the corporation.
Steve Does
that mean we elect our Board of Directors, adopt bylaws and choose the
company's officers?
Jackson That's
what I mean. Though the officers of the company supervise daily management,
the stockholders always have final authority. They vote at annual meetings.
Steve Yes,
I see it. By the way, does a corporation have limited liability?
Jackson It
does. It also has the right to own property, to buy and sell and right to sue
and be sued.
Steve I
see. The corporation acts like a person. It has the right of an individual.
Jackson You
are right.
Steve O.K.
Why don't we get together for a game of golf one day next week?
