de facto corporation
- 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
- Even though the business had not completed the incorporation process, the court treated it as a de facto corporation.
- The de facto corporation shielded the directors and shareholders from individual liability.
- 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.