Unlike most other business entities, only one member is required to form a corporation. One principal advantage of setting up a corporation is ease of formation. While formation of the corporation is easy, there are still a number of formal requirements that must be adhered to at the infancy of the corporation, such as the election of directors, appointment of officers, and the adoption and preparation of by-laws. Because the GCL is so comprehensive, the parties need not negotiate a detailed agreement covering the structure and operation of the organization. The corporation is managed through the Board of Directors who appoint officers to run the day to day operations.
Shareholders have no right to participate in the day to day management of the corporation.
The officers are considered the agents of the corporation, and neither the shareholders nor the directors have the authority to bind the corporation. Ownership of the corporation is transferred more easily than with other business entities through the transfer of shares of stock. A major advantage of the corporation is continuity of life. What that means is that a corporation is not terminated upon the withdrawal, death, or termination of the shareholders, officers, or directors. Generally, capital is raised through equity contributions by shareholders, loans from shareholders, and secured and unsecured loans from third parties.