Definition and Types of Corporations
A corporation is a legal entity, akin to a financially fixated Frankenstein, authorized by law to act as a single person despite being a collection of many individuals. It possesses rights and liabilities separate from those of its creators, meaning it can go about suing or being sued, getting into debts, and flexing rights it probably shouldn’t have in the first place.
This man-made marvel can trace its origins to various sources including Royal Charters, statutes, or the dusty corridors of common law. The most popular kids in the corporate block are registered companies organized under legislation like the Companies Act.
Corporations Sole and Aggregate
Not all corporations need to host a party to have a personality. Corporations sole are the high-end minimalists of the legal entity world. They consist of a single person, who doesn’t need anyone else to exist legally; consider a bishop or — if you’re feeling regal — the Sovereign.
On the other end of the spectrum are the corporations aggregate. These are the party animals, composed of two or more individuals, with examples including everyone’s favorite discussion point, the limited company. When they aren’t busy being sued or suing others, corporations aggregate might be found conducting business, owning property, or casually impacting global economies.
Corporate Capabilities
Possessing the ability to carry on business, own property, or bring legal actions under their own banner, corporations are not merely about paperwork. They are titans that stride the commercial landscape, bearing the mantle of “legal personhood” with all the gravitas and potential headaches it involves.
Corporate Formation and Purpose
Many corporations are created with specific aims such as educational, charitable, or commercial efforts. A quintessential example is the BBC, formed by statute for public broadcasting missions.
Related Terms
- Artificial Person: Legalese for a non-human entity, graced with many human rights, without the human condition.
- Registered Company: A company registered under laws like the Companies Act, entitling it to its own legal personality.
- Domestic Corporation: A corporation that operates primarily within the country of its incorporation.
Further Reading
- “Corporations Law and Policy, Materials and Problems” by Jeffrey D. Bauman, this book offers an in-depth exploration of the nuances of corporate law.
- “The Corporation: The Pathological Pursuit of Profit and Power” by Joel Bakan, a critical look at the corporate entity’s role in modern society and the economy.
Dive into this corpus of corporate culture where the line between person and paperwork blurs, and learn how artificial legal entities rule much of the business and financial world today.
