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{{Other uses}} |
{{Other uses}} |
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{{short description|Association or collection of individuals, whether natural persons, juridic persons, or a mixture of both}} |
{{short description|Association or collection of individuals, whether natural persons, juridic persons, or a mixture of both}} |
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{{Use mdy dates|date=March 2020}} |
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[[File:Münster, LVM, Bürogebäude -- 2013 -- 5149-51.jpg|thumb|A modern corporate office building in Münster, North Rhine-Westphalia, Germany.]] |
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A '''company''', abbreviated as '''co.''', is a [[Legal personality|legal entity]] made up of an [[Voluntary association|association]] of people, be they [[Natural person|natural]], [[Legal personality|legal]], or a mixture of both, for carrying on a [[Commerce|commercial]] or [[industry|industrial]] [[wikt:enterprise|enterprise]]. Company members share a common purpose, and unite to focus their various [[Aptitude|talents]] and organize their collectively available [[skill]]s or [[resource]]s to achieve specific, declared [[goal]]s. Companies take various forms, such as: |
A '''company''', abbreviated as '''co.''', is a [[Legal personality|legal entity]] made up of an [[Voluntary association|association]] of people, be they [[Natural person|natural]], [[Legal personality|legal]], or a mixture of both, for carrying on a [[Commerce|commercial]] or [[industry|industrial]] [[wikt:enterprise|enterprise]]. Company members share a common purpose, and unite to focus their various [[Aptitude|talents]] and organize their collectively available [[skill]]s or [[resource]]s to achieve specific, declared [[goal]]s. Companies take various forms, such as: |
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* [[voluntary association]]s, which may include [[nonprofit organization]]s |
* [[voluntary association]]s, which may include [[nonprofit organization]]s |
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| quote = Perhaps the best definition of a corporation was given by Chief Justice John Marshall in a famous Supreme Court decision in 1819. A corporation, he said, 'is an artificial person, invisible, intangible, and existing only in contemplation of the law.' In other words, a '''corporation''' [...] is an artificial person, created by law, with most of the legal rights of a real person. |
| quote = Perhaps the best definition of a corporation was given by Chief Justice John Marshall in a famous Supreme Court decision in 1819. A corporation, he said, 'is an artificial person, invisible, intangible, and existing only in contemplation of the law.' In other words, a '''corporation''' [...] is an artificial person, created by law, with most of the legal rights of a real person. |
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}} |
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</ref> |
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===Etymology=== |
===Etymology=== |
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The English word ''company'' has its origins in the [[Old French]] term ''compagnie'' (first recorded in 1150), meaning a "society, friendship, intimacy; body of soldiers",<ref>12th century: {{OEtymD|company}}</ref> which came from the [[Late Latin]] word ''companio'' ("one who eats bread with you"), first attested in the |
The English word ''company'' has its origins in the [[Old French]] term ''compagnie'' (first recorded in 1150), meaning a "society, friendship, intimacy; body of soldiers",<ref>12th century: {{OEtymD|company}}</ref> which came from the [[Late Latin]] word ''companio'' ("one who eats bread with you"), first attested in the'' [[Salic law|Lex Salica]]'' ([[English language|English]]: [[Salic Law]])({{circa}} 500 CE) as a calque of the [[Germanic languages|Germanic]] expression ''gahlaibo'' (literally, "with bread"), related to [[Old High German]] ''galeipo'' ("companion") and to [[Gothic language|Gothic]] ''gahlaiba'' ("messmate"). |
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=== Semantics and usage === |
=== Semantics and usage === |
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By 1303, the word referred to |
By 1303, the word referred to [[Guild|trade guilds]]<ref> |
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Compare: |
Compare: |
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{{OEtymD|company}} - '[...] the word having been used in reference to trade guilds from late 14c.' |
{{OEtymD|company}} - '[...] the word having been used in reference to trade guilds from late 14c.' |
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</ref> |
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Compare: |
Compare: |
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{{OEtymD|company}} - 'From late 14c. as "a number of persons united to perform or carry out anything jointly," which developed a commercial sense of "business association" by 1550s, the word having been used in reference to trade guilds from late 14c.' |
{{OEtymD|company}} - 'From late 14c. as "a number of persons united to perform or carry out anything jointly," which developed a commercial sense of "business association" by 1550s, the word having been used in reference to trade guilds from late 14c.' |
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</ref><ref> |
</ref><ref> |
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Compare: |
Compare: |
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{{OEtymD|co.}} - 'by |
{{OEtymD|co.}} - 'by 1670's as an abbreviation of company in the business sense, indicating the partners in the firm whose names do not appear in its name. Hence and co. to indicate "the rest" of any group (1757)'. |
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</ref> |
</ref> |
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== Companies around the world == |
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===United Kingdom=== |
===United Kingdom=== |
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{{See also|List of companies of the United Kingdom}} |
{{See also|List of companies of the United Kingdom}} |
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In [[English law]] and in legal jurisdictions based upon it, a company is a [[Legal personality|body corporate]] or corporation company registered under the |
In [[English law]] and in legal jurisdictions based upon it, a company is a [[Legal personality|body corporate]] or corporation company registered under the [[United Kingdom company law|Companies Acts]] or under similar legislation.<ref>[http://www.legislation.gov.uk/ukpga/2006/46/section/1 Companies Act 2006, Section 1] |
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</ref> |
</ref> Common forms include: |
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Common forms include: |
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* [[Community interest company]] |
* [[Community interest company]] |
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* [[Charitable incorporated organisation]] |
* [[Charitable incorporated organisation]] |
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* [[Private company limited by shares| |
* [[Private company limited by shares|Private companies limited by shares]] - the most common form of company |
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* [[Public limited company| |
* [[Public limited company|Public limited companies]] - companies, usually large, which are permitted to (but do not have to) offer their shares to the public, for example on a [[stock exchange]] |
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In the United Kingdom, a [[partnership]] is not legally a company, but may sometimes be referred to |
In the United Kingdom, a [[partnership]] is not legally a company, but may sometimes be referred to (informally) as a company. It may be referred to as a [[Business|firm]]. |
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===United States=== |
===United States=== |
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| quote = "2. A corporation, partnership, association, joint-stock company, trust, fund, or organized group of persons, whether incorporated or not, and (in an official capacity) any receiver, trustee in bankruptcy, or similar official, or liquidating [[Law of agency|agent]], for any of the foregoing. Investment Company Act 2(a)(8)(15 USCA 80a-2(a)(8))." |
| quote = "2. A corporation, partnership, association, joint-stock company, trust, fund, or organized group of persons, whether incorporated or not, and (in an official capacity) any receiver, trustee in bankruptcy, or similar official, or liquidating [[Law of agency|agent]], for any of the foregoing. Investment Company Act 2(a)(8)(15 USCA 80a-2(a)(8))." |
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}} |
}} |
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</ref><ref name="Black's">Black's Law and lee Dictionary. Second Pocket Edition. Bryan A. Garner, editor. West. 2001.</ref> In the US, a company is not necessarily a corporation.<ref>{{cite web|url= http://legal-dictionary.thefreedictionary.com/company|title= Company legal definition of company|work= TheFreeDictionary.com | quote = company [:] any formal business entity for profit which may be a corporation, a partnership, association or individual proprietorship. Often people think the term "company" means the business is incorporated, but that is not true. In fact, a corporation usually must use some term in its name such as "corporation," "incorporated," "corp." or "inc." to show it is a corporation.}} |
</ref><ref name="Black's">Black's Law and lee Dictionary. Second Pocket Edition. Bryan A. Garner, editor. West. 2001.</ref> In the [[United States|US]], a company is not necessarily a corporation.<ref>{{cite web|url= http://legal-dictionary.thefreedictionary.com/company|title= Company legal definition of company|work= TheFreeDictionary.com | quote = company [:] any formal business entity for profit which may be a corporation, a partnership, association or individual proprietorship. Often people think the term "company" means the business is incorporated, but that is not true. In fact, a corporation usually must use some term in its name such as "corporation," "incorporated," "corp." or "inc." to show it is a corporation.}} |
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</ref> |
</ref> |
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See also [[Business#Forms|types of business]] |
See also [[Business#Forms|types of business]] |
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* '''A [[Private company limited by guarantee|company limited by guarantee]]''' |
* '''A [[Private company limited by guarantee|company limited by guarantee]] (CLG):''' Commonly used where companies are formed for non-commercial purposes, such as clubs or charities. The members guarantee the payment of certain (usually nominal) amounts if the company goes into [[liquidation|insolvent liquidation]], but otherwise, they have no economic rights in relation to the company. This type of company is common in [[England]]. A company limited by guarantee may be with or without having [[share capital]]. |
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* '''A [[Private company limited by shares|company limited by shares]]''' |
* '''A [[Private company limited by shares|company limited by shares]]:''' The most common form of the company used for business ventures. Specifically, a limited company is a "company in which the liability of each shareholder is limited to the amount individually invested" with corporations being "the most common example of a limited company".<ref name="Black's"/> This type of company is common in [[England]] and many [[English-speaking world|English-speaking countries]]. A company limited by shares may be a |
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** |
**[[public company|publicly traded company]] or a |
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** [[privately held company]]. |
** [[privately held company]]. |
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* '''A company limited by guarantee with a share capital''' |
* '''A company limited by guarantee with a share capital:''' A hybrid entity, usually used where the company is formed for non-commercial purposes, but the activities of the company are partly funded by investors who expect a return. This type of company may no longer be formed in the UK, although provisions still exist in law for them to exist.<ref>Companies Act 2006</ref> |
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* '''A [[limited liability company]]'''. "A company—statutorily authorized in certain states—that is characterized by limited liability, management by members or managers, and limitations on ownership transfer", i.e., L.L.C.<ref name="Black's"/> LLC structure has been called "hybrid" in that it "combines the characteristics of a corporation and of a partnership or sole proprietorship". Like a corporation, it has limited liability for members of the company, and like a partnership it has "flow-through taxation to the members" and must be "dissolved upon the death or bankruptcy of a member".<ref>{{cite web|url=http://www.investopedia.com/terms/l/llc.asp#ixzz2CEzgE239|title=Limited Liability Company (LLC) Definition - Investopedia|author=root|work=Investopedia}}</ref> |
* '''A [[limited liability company]]'''. "A company—statutorily authorized in certain states—that is characterized by limited liability, management by members or managers, and limitations on ownership transfer", i.e., L.L.C.<ref name="Black's"/> LLC structure has been called "hybrid" in that it "combines the characteristics of a corporation and of a partnership or sole proprietorship". Like a corporation, it has limited liability for members of the company, and like a partnership it has "flow-through taxation to the members" and must be "dissolved upon the death or bankruptcy of a member".<ref>{{cite web|url=http://www.investopedia.com/terms/l/llc.asp#ixzz2CEzgE239|title=Limited Liability Company (LLC) Definition - Investopedia|author=root|work=Investopedia}}</ref> |
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* '''An [[unlimited company]] with or without a share capital'''. A hybrid entity, a company where the liability of members or shareholders for the debts (if any) of the company are not limited. In this case doctrine of a veil of incorporation does not apply. |
* '''An [[unlimited company]] with or without a share capital'''. A hybrid entity, a company where the liability of members or shareholders for the debts (if any) of the company are not limited. In this case doctrine of a veil of incorporation does not apply. |
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* '''Statutory companies'''. Relatively rare today, certain companies have been formed by a private statute passed in the relevant jurisdiction. |
* '''Statutory companies'''. Relatively rare today, certain companies have been formed by a private statute passed in the relevant jurisdiction. |
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When "Ltd" is placed after the company's name, it signifies a limited company, and "PLC" ([[public limited company]]) indicates that its shares are widely held.<ref>{{Cite web|url=https://www.bbc.com/bitesize/guides/z4br87h/revision/3|title=BBC Bitesize - GCSE Business - Forms of business ownership - Revision 3|website=BBC Bitesize|access-date=2018-08-31}}</ref> |
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In the legal context, the owners of a company are normally referred to as the "members". In a company limited or unlimited by shares (formed or incorporated with a share capital), this will be the [[shareholder]]s. In a company limited by guarantee, this will be the guarantors. Some [[Offshore financial center|offshore jurisdictions]] have created special forms of [[offshore company]] in a bid to attract business for their jurisdictions. Examples include "[[segregated portfolio company|segregated portfolio companies]]" and restricted purpose companies. |
In the legal context, the owners of a company are normally referred to as the "members". In a company limited or unlimited by shares (formed or incorporated with a share capital), this will be the [[shareholder]]s. In a [[Private company limited by guarantee|company limited by guarantee]], this will be the guarantors. Some [[Offshore financial center|offshore jurisdictions]] have created special forms of [[offshore company]] in a bid to attract business for their jurisdictions. Examples include "[[segregated portfolio company|segregated portfolio companies]]" and restricted purpose companies. |
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There are, however, many, many sub-categories of types of company that can be formed in various jurisdictions in the world. |
There are, however, many, many sub-categories of types of company that can be formed in various jurisdictions in the world. |
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==Further reading== |
==Further reading== |
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{{Wiktionary| |
{{Wiktionary|Company}} |
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{{ |
{{Wikiquote|Companies}} |
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{{Commons category|Companies}} |
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* Dignam, A and Lowry, J. ''Company Law''. Oxford: [[Oxford University Press]], 2006. {{ISBN|978-0-19-928936-3}}. |
* Dignam, A and Lowry, J. ''Company Law''. Oxford: [[Oxford University Press]], 2006. {{ISBN|978-0-19-928936-3}}. |
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* [[John Micklethwait]] and [[Adrian Wooldridge]], ''The Company: a Short History of a Revolutionary Idea''. New York: Modern Library, 2003. |
* [[John Micklethwait]] and [[Adrian Wooldridge]], ''The Company: a Short History of a Revolutionary Idea''. New York: Modern Library, 2003. |