DEFINITION of 'De Jure Corporation'

A de jure corporation is a fully incorporated company, which indicates that all of the statutory requirements for properly forming a corporation have been fully met.

BREAKING DOWN 'De Jure Corporation'

De jure, meaning "a matter of law," indicates that a corporation is a valid legal entity, and therefore entitled to hold board of director’s meetings, issue stock to shareholders and begin conducting business.

In comparison, a de facto corporation is a company that a court will treat as a legal corporation, even though it may not have been properly incorporated. The concept usually applies to individuals who have entered into a contract on behalf of a corporation which did not legally exist because all the boxes had not been ticked. Being recognized as a de facto corporation shields them from personal liability.

Corporation by estoppel is another common law doctrine that is designed to some protection to the officers and shareholders of a company that was not properly established and cannot be considered either a de jure or de facto corporation. Basically, when someone has been doing business with an entity in a manner that suggests they assumed the business was a corporation, they cannot later deny the corporate status of the company.

  1. Corporation

    A corporation is a legal entity that is separate and distinct ...
  2. Incorporation

    Incorporation is the legal process used to form a corporate entity ...
  3. Corporate Charter

    A corporate charter sets forth a corporation's basic information, ...
  4. De Novo Judicial Review

    De novo judicial review describes a review by a court of appeals ...
  5. Articles of Incorporation

    Articles of incorporation is a set of formal documents filed ...
  6. Domestic Corporation

    A domestic corporation is a company that conducts its affairs ...
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