de facto corporation

de facto corporation

n. a company which operates as if it were a corporation although it has not completed the legal steps to become incorporated (has not filed its Articles, for example) or has been dissolved or suspended but continues to function. The court temporarily treats the corporation as if it were legal in order to avoid unfairness to people who thought the corporation was legal. (See: de facto, de jure, ultra vires)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
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