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Shareholders determine action to be taken by the company, from election of directors to approval of corporate actions, by voting and normally each share allows one vote. Thus if a person owns fifty shares, that person has fifty votes, if the person has sixty shares, that person has sixty votes.
In general, the chief executive officer (CEO) is considered the highest-ranking officer in a company, while the president is second in charge; however, in corporate governance and structure, several permutations can take shape, so the roles of both CEO and president may be different depending on the company.
Before a corporation may acquire its own shares, it is required that it must have an unrestricted retained earnings, based on the trust fund doctrine, which means that the capital stock, property and other assets of a corporation are regarded as equity in trust for the payment of corporate creditors.
Section 8.01 of the Revised Model Business Corporation Act (RMBCA) states that all corporate powers shall be exercised by or under the authority of, and the business and affairs of the corporation managed under the direction of, its board of directors. A director is a fiduciaryA person to whom power is entrusted for
Tip. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management.

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The Law on Limited Liability and Additional Liability Companies (the LLC Law or the Law) allows companies to acquire their own shares and establishes the basic requirements for such procedure.
A corporation is a legal entity that is separate and distinct from its owners. Under the law, corporations possess many of the same rights and responsibilities as individuals. They can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes.
There are two classes of corporate powers. Express powers are those expressly authorized by the RCC or the corporations charter. Second is incidental or implied powers or those necessary to a corporations existence or to carry out express powers.
Non-stock corporations may incur or create bonded indebtedness, or increase the same, with the approval by a majority vote of the board of trustees and of at least two-thirds (2/3) of the members in a meeting duly called for the purpose.
A company repurchases its shares when it wants to consolidate ownership, preserve stock prices, return stock prices to real value, boost financial ratios, or reduce the cost of capital. Investors can benefit from stock buybacks because the practice has generally taken the place of dividends.

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