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Santa Ana California Form 1120 (Schedule M-3): What You Should Know
California Secretary of State Offices Corporations in the state of California whose Articles of Organization have a “corp.” field, are required to complete an “Articles of Incorporation.” The state of California has created their own article of organization, which is titled “. Corporations” California Corporations Code, section 2271. Articles of Incorporation are for incorporation of corporations and to provide for incorporates and officers. Articles of Incorporation are in part a contract and a valid legal agreement between the corporate body (which may be a body corporate, a limited liability company, or other legally separate entity) and the incorporated. The contract or agreement is enforceable against them as an agency agreement in their capacity as directors or officers of the entity within the contract. If the contract or agreement is breached, the other party has the same rights as the corporation to terminate its relationship with the individual party. In fact, in California, an agent may not, under any circumstances, act as the agent of any entity if the agent's sole purpose is to negotiate for the other entity (or otherwise to receive or to represent a benefit from the other entity), even if the agent's compensation from a third party will depend upon the terms of the negotiated agency agreement.  Articles of Incorporation or any similar instrument is also binding on any shareholder representing the corporation in the court of law. The term “article of incorporation” is defined as “(A) a written instrument that is a valid part of its state's civil law and expressly states: (1) the corporation's purpose, (2) the purposes for which the corporation is created, and (3) general requirements for the corporation to operate; and (B) such special provisions to make the corporation's operation orderly, efficient and economical, as are necessary to effect the corporation's purpose.” The corporation's articles of incorporation state the purpose of the corporation (i.e. its purpose and functions). It also contains a list of the corporation's officers, directors and shareholders. Any other individual or entity who may hold any such corporate power or who acts in an official capacity for the corporation is the statutory agent for the corporation and is bound by the articles of incorporation, including the statutes governing the corporation's rights on its books and in its books.
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