corporation act

Corporate legislation that sets out the statutory requirements for founding a registered-firm, and governs the conduct of its directors and officers. The act commonly requires a company to maintain a registered office, a minimum number of two directors, filing of the memorandum of association and articles of association (in the UK), or articles of incorporation and bylaws (in the US) with the appropriate authority (such as the Registrar Of Companies). Failure to follow the act's requirements may result in forfeiture of limited-liability protection granted to the stockholders (shareholders) under its stipulations. Called Companies Act in the UK and British Commonwealth countries.