Model Business Corporation Act
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The Model Business Corporation Act of 1950 (MBCA) is a model set of law prepared by the American Bar Association and adopted by many states. It was created due to variation in how states defined corporations after World War II. The variation and uncertainty resulted in many lawsuits in which a promoter was sued personally for obligations ostensibly made in the name of a nascent corporation. The widespread adoption of the MBCA brought some clarity to this and other corporations law issues.
