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Corporate veil: Difference between revisions
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A [[corporation]] is, literally, a different [[Corporate personality|person]] from its [[shareholder]]s. Even if it only has ''one''. | A [[corporation]] is, literally, a different [[Corporate personality|person]] from its [[shareholder]]s. Even if it only has ''one''. | ||
It is not true to say a company’s [[shareholder]]s “beneficially” own the company’s assets: that is to confuse the [[Companies Act 2006 (UK)|statutory regime governing corporations]] and the [[Law of equity|equitable]] one governing ''[[trust]]s''. A [[shareholder]] — even ''sole'' [[shareholder]] — owns, legally and [[Beneficial ownership|beneficial]]ly, the shares in the company. The company, legally and beneficially, owns its ''own'' assets. A 100% shareholding is not the same, even economically, as [[beneficial | It is not true to say a company’s [[shareholder]]s “beneficially” own the company’s assets: that is to confuse the [[Companies Act 2006 (UK)|statutory regime governing corporations]] and the [[Law of equity|equitable]] one governing ''[[trust]]s''. A [[shareholder]] — even ''sole'' [[shareholder]] — owns, legally and [[Beneficial ownership|beneficial]]ly, the shares in the company. The company, legally and beneficially, owns its ''own'' assets. A 100% shareholding is not the same, even economically, as [[beneficial ownership|“beneficial” ownership]] of those assets, since the company’s creditors get first claim to their value should the company be unable to pay its debts. | ||
===The [[employees]] and the [[agency problem]]=== | ===The [[employees]] and the [[agency problem]]=== | ||