de facto corporation

Definition of "de facto corporation"
  1. A business treated as a corporation by the court, despite not having finished all legal steps to become one, for the protection of directors, officers and shareholders who believed they were running a fully established corporation
How to use "de facto corporation" in a sentence
  1. Even though the business had not completed the incorporation process, the court treated it as a de facto corporation.
  2. The de facto corporation shielded the directors and shareholders from individual liability.
  3. Believing they were operating a full-fledged business, the officers of the de facto corporation were surprised when it hadn't finished all the incorporation steps.

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