Corporate Capacity
/ˈkɔːrpərət kəˈpæsɪti/
Definitions
- (n.) The legal ability of a corporation to enter into binding contracts and to sue or be sued in its own name.
The board verified the company's corporate capacity before executing the merger agreement.
- (n.) The authority of a corporation to undertake certain acts as defined by its charter or articles of incorporation.
The CEO acted beyond the corporate capacity, requiring shareholder approval for the transaction.
Forms
- corporate capacity
Related terms
See also
Commentary
Corporate capacity is distinct from acting capacity; it pertains to the corporation's inherent legal power as defined by its charter, not the authority of particular agents.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.