The rule states that directors of corporations will not be held personally liable for unwise business decisions providing that the directors made an informed decision and that decision was not tainted by self-interest. Bylaws Bylaws are the rules and regulations adopted by a corporation for its internal governance. It usually contains provisions relating to shareholders, directors, officers and general corporate business. At the corporation's initial meeting the bylaws are adopted. Bylaws are a private document not filed with any state authority.
Bylaws are more flexible than the articles of incorporation because they are easier to amend.
The amount is determined by calculating the difference between an asset's purchase and sale price. Capital Stock See Authorized stock. An accounting method under which income is subject to tax when actually received and deductions are allowed when actually paid. Certificate of Authority Is a document issued by the proper state authority to a foreign corporation granting the corporation the right to do business in that state. Some states have close corporation statutes.