A de jure corporation is in full compliance with all aspects of the corporate statute. Once the corporation has de jure status, the shareholders have limited liability Defective incorporation occurs when the promoters fail to fully comply with the applicable corporate statute. De Facto Corporation Corporation by Estoppel Defective incorporation occurs when the promoters fail to fully comply with the applicable corporate statute. De Facto Corporation Corporation by Estoppel Characteristics Articles and Bylaws Pre-Incorporation Contracts Ultra Vires Doctrine The Objective of the Corporation Characteristics Articles and Bylaws Pre-Incorporation Contracts Defective Incorporation Ultra Vires Doctrine The Objective of the Corporation Corporate Form