What type of corporation is considered de facto?

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A de facto corporation is one that operates as if it were a legal corporation but does not have the legal status of a corporation due to some defect in the incorporation process. The key characteristic of a de facto corporation is that it is conducting business and is treated as a corporation by the public and third parties, despite not having completed all the statutory requirements for proper incorporation.

In this context, a corporation operating without proper incorporation fits the definition of a de facto corporation. It is attempting to fulfill its function as a corporation and may have some elements of corporate governance, but lacks the necessary legal standing because it did not complete the formalities required by law to become a legitimate corporation.

The other options do not accurately capture the essence of a de facto corporation. Establishing a corporation through informal agreements does not align with the legal definition required for a de facto status. A corporation meeting statutory requirements but facing challenges may be fully legitimate but in a difficult position, rather than being de facto. Lastly, a corporation formed expressly by law indicates a properly established entity that has met all necessary legal requirements and therefore does not fall under the de facto classification.