The Corporate Legal Entity as a Fund

Journal of Business Law, Forthcoming

21 Pages Posted: 29 Dec 2018

See all articles by Susan Watson

Susan Watson

University of Auckland Faculty of Law

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

Suggested Citation

Watson, Susan Mary, The Corporate Legal Entity as a Fund (December 12, 2017). Journal of Business Law, Forthcoming. Available at SSRN:

Susan Mary Watson (Contact Author)

University of Auckland Faculty of Law ( email )

Private Bag 92019
Auckland Mail Centre
Auckland, 1142
New Zealand

Register to save articles to
your library


Paper statistics

Abstract Views
PlumX Metrics