ANSWERS: 1
  • A statutory agent is named in the articles of incorporation of a business to undertake specific, official tasks on behalf of that enterprise. By law a corporation must designate a statutory agent in any U.S. state in which it operates.

    Function

    The primary function of a statutory agent is to accept a summons and petition (or complaint) on behalf of a corporation when that business is sued. Summons and petition commonly are referred to as "court papers."

    Identification

    The statutory agent must maintain an easily identifiable location in the brick and mortar world where service of court papers is made. The location must be a street address and cannot be a P.O. box.

    Registration

    The name and location of a statutory agent must be kept current in the records of the secretary of state's office. Amended filings are made to the business's articles of incorporation if there is any change.

    Communication

    When served with court papers, a statutory agent must get them to an appropriate officer of the corporation immediately.

    Benefits

    The benefits of designating a statutory agent are two-fold. First, a person or business suing the corporation has a definite person to sue. Second, the corporation knows it will be notified of a pending suit promptly through the statutory agent.

    Source:

    "Corporation Law and Economics"; Stephen M. Bainbridge; 2008

    "The Law of Corporations"; Robert W. Hamilton; 2000

    Ohio Secretary of State: Statutory Agents

    More Information:

    Information on Corporate and Business Law

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