the facts and just the facts about diverse topics--the kind that involve at least a short explanation
Tuesday, August 23, 2011
a corporation as a person
There has been some recent noise about a corporation being a person. I missed what started the fray--but, in some respects, a corporation is a person. For the purposes of lawsuits or financial responsibility, a corporation is considered a person. No one can sue the officers of a corporation for an accident, for instance. The party named in the lawsuit is the corporation, and if at fault, it is the corporation that is expected to pay. In legal terms, a corporation is a "legal person". This is why businesses incorporate. People put their money into a corporation--even if it is a small family business. Their homes and personal property are not at risk of being claimed for a debt the corporation owes.
Labels:
corporation,
legal person
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