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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.
In order for a company to be privately held, it must be organized as a corporation. A corporation is a legal form of business that is established by a corporate charter granted by a particular state. The corporate charter establishes the corporation as a separate legal entity from its owners.