A corporation is a legal entity whose existence is distinguished from that of its owner. Its holders participate in the capital stock through shares that confer economic and political rights. The shares differ from each other according to the powers they confer or by their nominal value.
The advantages of this type of society are several. First, the owners have no personal responsibility since the creditors have rights over the assets of the corporation and not over the profits of the shareholders. In second place, Stock trading allows small investors to participate.
The owners find participation within the company through a supervisory and administrative body called the general shareholders' meeting. This is in charge of making decisions that will affect the course of the company. To carry out this task, the board meets once a year in what is called ordinary general meeting of shareholders, although it may happen that for reasons of necessity the shareholders are summoned to what is called extraordinary general meeting of shareholdersIn other words, an unusual meeting to deal with emergency situations. Some examples of the topics covered in the meetings are distribution of benefits, remuneration of directors, dissolution of the company, division of the company, etc. However, a common and highly relevant one is the election of the board of directors.
The board of directors is a body to which the company's administrative decision-making is delegated. Its structure is based on the statutes, which in general are flexible enough to have the most pertinent options as circumstances require.
Corporations are an excellent opportunity to make investments when you have limited capital. However, to carry out these operations it is necessary to have a good knowledge of the market and its operation.
