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Author: Random Intruder MP
Sponsor: N/A
Type: Act of Parliament
A
BILL
TO
Codify Corporate Establishment
Preamble: The purpose of this Act is to facilitate economic growth and innovation on the server by providing a framework for the formation, regulation, and dissolution of corporations.
1. Conflicts
(a) In the event that any portion of this Act conflicts with any prior Act or Government policy, the contents of this Act shall supersede any such conflict.
(b) In the event that any future legislation conflicts with this Act, the contents of the new Act shall supersede any such conflict.
(c) Only the conflicting portions of legislation/policy shall be overwritten, any non-conflicting portions shall remain in effect.
2. Definitions
(a) Corporation: A legal entity formed by one or more individuals or parties, recognized by law, capable of conducting transactions, entering into contracts, and owning assets.
(b) Shareholder: An individual or entity that holds shares in a corporation.
(c) Board of Directors: A group of individuals elected by the shareholders to oversee the management and operations of a corporation.
3. Formation of Corporations
(a) Any party wishing to form a corporation must file an application with the Ministry of Commerce, including:
(i) The proposed name of the corporation.
(ii) The purpose and nature of the business.
(iii) The names and signatures of the founding shareholders and directors.
(iv) The corporation’s proposed bylaws. If no bylaws are present, the default bylaws are codified in this Act.
(b) The Ministry of Commerce shall review the application for compliance with the law and approve or deny the application based on these criteria, as well as any other criteria as determined by the Government.
4. Governance
(a) Every corporation must have a Board of Directors responsible for making major decisions and overseeing the management of the corporation.
(b) Shareholders, as well as any other group designated outside this Act or by the corporation, shall have the power to elect members to the Board of Directors.
(c) Corporate bylaws shall be legally binding upon a corporation. A corporation found to be in breach of their own bylaws may be found guilty of breach of contract, fraud, or any other applicable law.
5. Regulatory Compliance
(a) Corporations are subject to periodic audits by the Government to ensure compliance with laws and regulations.
(b) Any corporation found to be in violation of the law may be subject to fines, sanctions, dissolution, or seizure of assets.
6. Dissolution
(a) A corporation may be dissolved voluntarily by a majority vote of its shareholders or involuntarily by law due to prolonged inactivity, insolvency, legal violations, or other scenarios as specified by the Government.
(b) Assets remaining after dissolution shall be distributed to the shareholders according to their shareholdings after settling all debts and obligations, unless otherwise specified by the Government.
7. Public Companies
(a) Any corporation may choose to go public through the Ministry of Commerce, with the approval of their shareholders.
(b) Public corporations are required to publicize data about the company on a regular basis. The types of data and the minimum frequency shall be determined by both the Ministry of Commerce and the respective stock market agency, with whichever is stricter for specific metrics to apply.
(c) Stock in public corporations may be bought, sold, or otherwise leveraged by any entity, organization, or individual who is authorized to do so in accordance with both Government policy and the rules set by the relevant stock market agency, with Government policy applying where it conflicts with rules set by the stock market agency.
8. Default Bylaws
(a) A group of shareholders representing a majority stake in the company may at any time meet and modify the size, composition, and voting system used by the board.
(b) A group of board members representing a majority voting interest on the board may at any time meet and make legally binding decisions on behalf of the corporation.
(c) Each member of the board shall have 1 vote. In the event of a tie, the proposition shall fail.
(d) Any decision relating to the minting of new stock or modifications to the corporate bylaws shall require approval from shareholders representing a majority stake in the company.
(e) Anything else may be added to the default bylaws for corporations by the relevant regulating authorities. In the event that the default bylaws are modified, any corporation following the default bylaws shall continue to be bound only by the default bylaws at time of incorporation.
Enactment: This Act comes into force immediately upon passage
Sponsor: N/A
Type: Act of Parliament
A
BILL
TO
Codify Corporate Establishment
Preamble: The purpose of this Act is to facilitate economic growth and innovation on the server by providing a framework for the formation, regulation, and dissolution of corporations.
1. Conflicts
(a) In the event that any portion of this Act conflicts with any prior Act or Government policy, the contents of this Act shall supersede any such conflict.
(b) In the event that any future legislation conflicts with this Act, the contents of the new Act shall supersede any such conflict.
(c) Only the conflicting portions of legislation/policy shall be overwritten, any non-conflicting portions shall remain in effect.
2. Definitions
(a) Corporation: A legal entity formed by one or more individuals or parties, recognized by law, capable of conducting transactions, entering into contracts, and owning assets.
(b) Shareholder: An individual or entity that holds shares in a corporation.
(c) Board of Directors: A group of individuals elected by the shareholders to oversee the management and operations of a corporation.
3. Formation of Corporations
(a) Any party wishing to form a corporation must file an application with the Ministry of Commerce, including:
(i) The proposed name of the corporation.
(ii) The purpose and nature of the business.
(iii) The names and signatures of the founding shareholders and directors.
(iv) The corporation’s proposed bylaws. If no bylaws are present, the default bylaws are codified in this Act.
(b) The Ministry of Commerce shall review the application for compliance with the law and approve or deny the application based on these criteria, as well as any other criteria as determined by the Government.
4. Governance
(a) Every corporation must have a Board of Directors responsible for making major decisions and overseeing the management of the corporation.
(b) Shareholders, as well as any other group designated outside this Act or by the corporation, shall have the power to elect members to the Board of Directors.
(c) Corporate bylaws shall be legally binding upon a corporation. A corporation found to be in breach of their own bylaws may be found guilty of breach of contract, fraud, or any other applicable law.
5. Regulatory Compliance
(a) Corporations are subject to periodic audits by the Government to ensure compliance with laws and regulations.
(b) Any corporation found to be in violation of the law may be subject to fines, sanctions, dissolution, or seizure of assets.
6. Dissolution
(a) A corporation may be dissolved voluntarily by a majority vote of its shareholders or involuntarily by law due to prolonged inactivity, insolvency, legal violations, or other scenarios as specified by the Government.
(b) Assets remaining after dissolution shall be distributed to the shareholders according to their shareholdings after settling all debts and obligations, unless otherwise specified by the Government.
7. Public Companies
(a) Any corporation may choose to go public through the Ministry of Commerce, with the approval of their shareholders.
(b) Public corporations are required to publicize data about the company on a regular basis. The types of data and the minimum frequency shall be determined by both the Ministry of Commerce and the respective stock market agency, with whichever is stricter for specific metrics to apply.
(c) Stock in public corporations may be bought, sold, or otherwise leveraged by any entity, organization, or individual who is authorized to do so in accordance with both Government policy and the rules set by the relevant stock market agency, with Government policy applying where it conflicts with rules set by the stock market agency.
8. Default Bylaws
(a) A group of shareholders representing a majority stake in the company may at any time meet and modify the size, composition, and voting system used by the board.
(b) A group of board members representing a majority voting interest on the board may at any time meet and make legally binding decisions on behalf of the corporation.
(c) Each member of the board shall have 1 vote. In the event of a tie, the proposition shall fail.
(d) Any decision relating to the minting of new stock or modifications to the corporate bylaws shall require approval from shareholders representing a majority stake in the company.
(e) Anything else may be added to the default bylaws for corporations by the relevant regulating authorities. In the event that the default bylaws are modified, any corporation following the default bylaws shall continue to be bound only by the default bylaws at time of incorporation.
Enactment: This Act comes into force immediately upon passage