In this connection it may be noted that corporations are granted some privileges not possessed by individuals. For instance, private property such as land may be taken, even against the wishes of the owner, to permit the building of a railroad. This can be done, however, only on the ground of public good, and by giving the owner just compensation.
Responsibility.—A corporation, like any other person is responsible for any contracts that it makes, within its charter. It necessarily acts entirely through agents, hence the law of agency has an important bearing upon all contracts with a corporation.
Debts incurred lie against the corporation, not as a rule against the stockholders individually. Sometimes stockholders are by the charter made liable to limited extent, say to an amount equal to the par value of their stock.
Dissolution.—Some companies are incorporated so that they may last forever. Others are incorporated for a specified time. The latter expire by limitation or by becoming insolvent. A corporation of either kind may secure dissolution by voluntarily surrendering its charter. And sometimes the legislature reserves in the charter the right to dissolve the company under certain conditions.
The affairs of a corporation are usually closed up by a "receiver," who collects the bills, disposes of the property, pays the indebtedness as far as he can, and distributes the residue among the stockholders.
COMPARISON OF PARTNERSHIP WITH CORPORATION.
POINTS OF PARTNERSHIP. CORPORATION. COMPARISON.
1. Status. A collection of natural A fictitious person.
persons.
2. Formation. By agreement. By legislative
enactment.
3. Powers. Those of natural persons. Only those conferred
by law.