De Jure Corporation – Definition

Cite this article as:"De Jure Corporation – Definition," in The Business Professor, updated November 24, 2018, last accessed October 20, 2020,


De Jure Corporation Definition

The word De jure refers to ‚Äúa matter of law‚ÄĚ. A de jure corporation is a business complied with all the requirements of its state incorporation statute and thus legally permitted to functions as a corporation. A corporation with de jure status is allowed to issue stocks in the market, hold board of director‚Äôs meetings, and conduct the day to day business.

A Little More on What is a De Jure Corporation

This doctrine is generally applied for shielding the shareholders from liability. If a person enters a contract on behalf of a corporation that is not a de jure corporation, this doctrine may protect the person from liability. However, most states do not apply the doctrine when there are reasons to believe that the concerned person was aware that the incorporation effort was flawed at the time of their reported action on behalf of the corporation.

A De facto Corporation, on the other hand, is a corporation that is not properly incorporated but is recognized as a legal corporation by the court of law. In order to become a de facto corporation, a company must need to meet certain requirements prescribed by the law of the court.

A third doctrine is a Corporation by estoppel. It is for protecting the officers and shareholders of a company that was not properly incorporated and does not meet the criteria of being a de jure or de facto corporation. If a person has done business with such an entity assuming it to be a corporation, later he may be estopped from denying the corporate status of the company.

References for De Jure Corporation Explained

Academic Research on De Jure Corporation

De jure interstate banking: Why only now?, Kane, E. J. (1996). Journal of Money, Credit and Banking, 28(2), 141-161. This paper is divided into three segments. The first part reviews the history as regards the restriction placed on interstate banking. This paper, however, summarizes the provision of the interstate branching and banking Efficiency Act of 1994 by undermining the opt-out and opt-in lobbying-pressure model that was assigned by this Act to the state legislature. One of the assumptions garnered from this paper is that the de facto liberation of a regulatory regime comes before its de jure liberalization. And this paper assumes that once it has been adopted, the restriction of the bank’s status remains intact until competitive regulatory enforcement and technology have designed a wide loophole which can be used to reverse the statute-sponsoring balance of lobbying pressure.

De Facto Corporations, Carpenter, C. E. (1911). Harv. L. Rev., 25, 623. This paper explains the d facto corporations and all that has to do with how the de facto liberation can be synchronized into the affairs of various firms and manufacturing institutes.

The modern corporation and private property, Dodd Jr, E. M. (1933). According to this paper, the most recent or modern corporation and private property were studied and the correlation between them and the de facto merger was established.

A Note on Partnership Liability of Stockholders in Defective Corporations, Magruder, C. (1927). Harvard Law Review, 40(5), 733-751. In this paper, a note as regards the partnership liability of various stockholders in Defective Corporation was studied and the relationship between them and the de facto merger and the de jure liberation were also explained.

De Facto Municpal Corporations under Unconstitutional Statutes, Tooke, C. W. (1927). Yale LJ, 37, 935. This paper explains the De facto municipal corporations under unconstitutional statutes. In this study, these terms were explained and their relationship with one another was also discussed.

Piercing the veil of limited liability, Meiners, R. E., Mofsky, J. S., & Tollison, R. D. (1978). Del. J. Corp. L., 4, 351. According to this study, the piercing of the veil of the limited liability company as well as the relationship between them and the de facto merger was also discussed.

Collateral attack on incorporation, Warren, E. H. (1906). Harv. L. Rev., 20, 456. According to the analyses carried out in this study, the collateral attack as regards incorporation was explained in this study. This paper also explains how these collateral attacks can be tackled.

Privileges and Powers of a Corporation and the Doctrine of Ultra Vires, Harno, A. J. (1925). The Yale Law Journal, 35(1), 13-28. According to this paper, powers and privileges, a corporation enjoys as well as the words and believes of the Ultra vires was discussed in this paper.

Cultural influence on the development of accounting systems internationally: A test of Gray’s [1988] theory, Salter, S. B., & Niswander, F. (1995). Journal of international business studies,¬†26(2), 379-397. In this research paper, an attempt was made to explain the theory that was propagated by Gray 1988. This theory, however, links the accounting systems and values with Hofstede‚Äôs 1980 cultural constructs. According to the data obtained from twenty-nine countries, they explain that although Gray‚Äôs 1988 model has a statistically significant explanatory power, it is also regarded as the best when it comes to the planning of a real financial reporting practice. The disadvantage is that it is very weak and ineffective when it comes to explaining the extant regulatory and professional structure from a cultural perspective.

Continuity of Interest–Its Application to Shareholders of the Acquiring¬†Corporation, Turnier, W. J. (1976). Calif. L. Rev.,¬†64, 902. In this paper, the continuity of interest as regards the applications submitted to shareholders of the acquiring corporation was discussed and solutions were provided.

The development of the corporation in England, with emphasis on limited liability, Gillman, M., & Eade, T. (1995). International Journal of Social Economics, 22(4), 20-32. According to this paper, several traces showing the evolution of the corporation in England from Greco-Roman times to the Joint Companies Act of 1862 was studied in this paper. According to the research, a supply of the corporate form that answers to the demands of the marketplace was also discussed. The corporate form became self-motivated with the growing specialization of labour that rose from the market hence, ending the enactment of the generally available limited liability incorporation.

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