The Corporate Legal Entity as a Fund
Journal of Business Law, Forthcoming
21 Pages Posted: 29 Dec 2018
Date Written: December 12, 2017
The modern business corporation or company is a primary tool of capitalism. The aggregation of capital in the corporate entity has provided an impetus for growth and development that could never have been anticipated when the first general incorporation statutes were passed in the middle of the 19th century. But along with a questioning of capitalism, the tenets of company and corporate law are also coming under scrutiny. The argument in this article is based on a new paradigm for the company. The paradigm is based on understanding of the modern company as a legal person endowed by the state containing a fund that is comprised of rights. The article’s focus is on the making of the company: the combination of elements that led to the modern form. The article also provides possible reasons why it took until at least the end of the 19th century for the modern form to evolve.
Keywords: corporate law; separate legal entity; legal thoery; legal history
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