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.
The primary stock of a corporation. This stock gives shareholders the right to participate in management of the corporation and give the shareholder a proportionate share of the dividends. Corporate Record Book Maintaining the proper records is very important to assure limited liability to corporate shareholders. The corporation should have a record book which contains a copy of the articles of incorporation, bylaws, initial and subsequent minutes of directors and shareholders meetings and a stock register. This method of voting is intended to create adequate representation of minority shareholders.