Company/Talk

I disagree with many of the statements in Company, but rather than change them on my own say so, felt that discussion was more appropriate.

> A company (or corporation) is a legal? entity chartered by the state for a particular purpose.

What do we mean by "chartered"? Some historical companies have been formally chartered by the state, but others are simply licensed or recognized, allowing them to do business. Yet other companies, private partnerships or sole owner companies, simply file public notice concerning a fictitious business name and go into business without needing formal recognition from the state.

> Sometimes called a "fictional person" a company enjoys many of the rights? and responsibilities? of individual citizens? such as the ability to own property, sign binding contracts?, pay taxes?, and otherwise participate in society?.

To my knowledge this applies only to formal corporations (by whatever name applies in the nationality involved). Non-corporate companies do not have these rights and abilities, but instead the owners of the company individually and/or jointly own property, sign contracts, etc.

> American corporations are typically chartered in Delaware?.

No, American corporations are typically chartered in the state where the founding members live or do business. Every state has large numbers of corporations, and I expect there are fewer in Delaware than in many of the larger states.

Some states do have specific laws which grant more protections to corporations, either in general or to specific types of corporations. Because of this, financial corporations (such as credit card companies) often choose to incorporate in Delaware. However, other types of corporations will likewise choose to incorporate in other states which are friendly to their type of company.

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In my experience, "company" is primarily used to refer to corporations. I suppose it can be used to refer to a partnership, although I at least would not normally call partnerships companies. I cannot see how you can call a single proprietorship a company though -- the fundamental meaning of company is a group of individuals -- how can a single person be a group?

Not all corporations are companies though. Many government agencies or non-profit organizations are called "corporations", but I wouldn't call them companies. And I don't think you could call a corporation sole a company, based on the definition of "company".

All corporations have to be chartered in some sense. Historically, there are three different ways in English law a company can be established: by royal charter, by special act of Parliament passed to create that particular company, or by registration under a general Corporations Act. Often, only companies established by royal charter or act of Parliament are referred to as having a "charter" (although maybe usage is different in the US).

Also, I think the US is somewhat unusual in having different corporations laws in each state. Most countries (e.g. Australia) have a national corporations law. There is even some transnational corporations law in development (via the European Company Statute). -- SJK