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.

RELATED TERMS
  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 ...
Related Articles
  1. Investing

    Are Your Stocks Doomed?

    When a company is headed for trouble, the warning signs are usually there. Learn how to spot disaster.
  2. Trading

    Asset protection for the business owner

    Learn about common asset-protection structures and which vehicles might work best to protect particular types of assets.
  3. Financial Advisor

    Understanding S Corporations

    This corporate structure is favored by many entrepreneurs, including financial advisors. Here's an overview of its advantages and disadvantages.
  4. Trading

    Lowe's Stock Breaks Out After Activist Investor Takes a Stake

    Lowe's shares moved sharply higher after D.E. Shaw reportedly took an activist stake, but traders will be watching these key levels.
  5. Taxes

    Do U.S. High Corporate Tax Rates Hurt Americans?

    The United States has the highest corporate tax rate of the 34 developed, free-market nations that make up the Organization for Economic Cooperation and Development (OECD).
  6. Small Business

    Governance Pays

    Learn about how the way a company keeps its management in check can affect the bottom line.
  7. Trading

    Canada And Australia Dollars To Be Reserve Currencies

    The IMF upgrading the Canadian and Australian dollars to "official" reserve currency status is a recognition of reality.
  8. Investing

    Key Financial Ratios to Analyze The Automotive Industry

    Learn about the most critically important financial ratios investors and market analysts utilize to evaluate companies in the automotive industry.
  9. Small Business

    Should You Incorporate Your Business?

    Find out how becoming a corporation can protect and further your finances.
RELATED FAQS
  1. What debt/equity ratio is average in the automotive sector?

    Find out more about the importance of analyzing the debt-to-equity ratio and the average debt-to-equity ratio of companies ... Read Answer >>
  2. What is considered a good net debt-to-equity ratio?

    Learn about the maximum acceptable debt to equity ratio, what it means about a company's capital structure and why the optimal ... Read Answer >>
  3. What is the salad oil scandal?

    Before Bre-X, there was Allied Crude Vegetable Oil Refining Corporation. In 1962, Anthony "Tino" De Angelis set about to ... Read Answer >>
  4. What is the history of corporations in America?

    Read a short history of the American corporation, from the first industrial producers to the period of American business ... Read Answer >>
  5. Are there any legal monopolies in America or Europe?

    Legal monopolies continue to exist in the United States and Europe despite the current trend against their recognition and ... Read Answer >>
Trading Center