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In general terms, the principals of a corporation are the owners or investors, referred to as shareholders or stockholders. The agents of the corporation are generally considered to be the board of directors, officers or other persons the corporation authorizes to act on its behalf.
Formation. A corporation is formed under the laws of the state where its articles of incorporation are filed. State corporation laws determine who owns a corporation. In all states, the ownership of a corporate entity is vested in shares of stock.The number of shares a corporation initially authorizes is detailed in the articles of incorporation.hareholders are the legal owners of a corporation, but that does not give them the right to be involved in the day-to-day management of the company. Shareholders have the right to vote for members of the board of directors. The board runs the company for the benefit of shareholders.