Generally, a company is a form of business organization Companies law is the field of law concerning companies and other business organizations. It is an establishment formed to carry on commercial enterprises. This includes corporations, partnerships and other associations which usually carry on some form of economic or charitable activity. The most prominent kind of company, usually referred to as a &. The precise definition varies.

In the United States The United States of America is a federal constitutional republic comprising fifty states and a federal district. The country is situated mostly in central North America, where its forty-eight contiguous states and Washington, D.C., the capital district, lie between the Pacific and Atlantic Oceans, bordered by Canada to the north and Mexico to the, a company is a corporation—or, less commonly, an association, partnership, or union—that carries on an industrial enterprise."^[1] Generally, a company may be a "corporation A corporation is a legal entity separate from the persons that own it. In British tradition it is the term designating a body corporate, where it can be either a corporation sole or a corporation aggregate (involving more persons). In American and, increasingly, international usage, the term denotes a body corporate formed to conduct business, and, partnership A partnership is a type of business entity in which partners share with each other the profits or losses of the business. Partnerships are often favored over corporations for taxation purposes, as the partnership structure does not generally incur a tax on profits before it is distributed to the partners (i.e. there is no dividend tax levied), association, joint-stock company A joint stock company is a type of business entity: it is a type of corporation or partnership between two companies. Certificates of ownership (or stocks) are issued by the company in return for each contribution, and the shareholders are free to transfer their ownership interest at any time by selling their stockholding to others, trust A Investment trust is a form of collective investment found mostly in the United Kingdom. Investment trusts are closed-end funds and are constituted as public limited companies, fund A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. The mutual fund will have a fund manager that trades the pooled money on a regular basis. The net proceeds or losses are then typically, or organized group of persons, whether incorporated or not, and (in an official capacity) any receiver, trustee in bankruptcy, or similar official, or liquidating agent, for any of the foregoing."^[1]

In English law English law is the legal system of England and Wales, and is the basis of common law legal systems used in most Commonwealth countriesand the United States . It was exported to Commonwealth countries while the British Empire was established and maintained, and it forms the basis of the jurisprudence of most of those countries. English law prior to, and therefore in the Commonwealth realms A Commonwealth realm is any one of 16 sovereign states within the Commonwealth of Nations that each have Elizabeth II as their respective monarch. These countries have a combined area totalling 18.8 million km² , and a combined population of 132 million; all but about 2 million live in the six most populous states, namely the United Kingdom,, a company is a form of body corporate In English Law , body corporate is the legal term for a corporate body, i.e. a corporation. It is distinct from a natural person, although it has many of the same legal rights or corporation, generally registered under the Companies Acts United Kingdom company law is governed by the Companies Act 2006. The Insolvency Act 1986, the Company Directors Disqualification Act 1986, and the old Companies Act 1985 are also important statutes. It applies across the United Kingdom, and is highly influential within Europe and around the world or similar legislation. It does not include a partnership or any other unincorporated group of persons.

Etymology

The word company is traced from a 1150 A.D. O.Fr. term compaignie or "body of soldiers" and from L.L. companio (companion). The word's meaning of "subdivision of an infantry regiment" is from 1590. The use of the word in a sense of "business association" was first recorded 1553, having earlier been used in reference to trade guilds (1303). The abbreviation co. dates from 1769.^[2] In short a company can be defined as an artificial person having a separate legal entity, perpetual succession and a common seal.It is not affected by the death,lunacy or insolvency of a member.

History

According to one source, "it may be formed by Act of Parliament A parliament is a legislature, especially in those countries whose system of government is based on the Westminster system modeled after that of the United Kingdom. The name is derived from the French parlement, the action of parler : a parlement is a discussion. The term came to mean a meeting at which such a discussion took place. It acquired, by Royal Charter, or by registration under company law (referred to as a limited liability or joint-stock company)."^[3] In the United Kingdom The United Kingdom of Great Britain and Northern Ireland is a sovereign state located off the northwestern coast of continental Europe. It is an island country, spanning an archipelago including Great Britain, the northeastern part of Ireland, and many small islands. Northern Ireland is the only part of the UK with a land border, sharing it with, the main regulating laws are the Companies Act 1985 The Companies Act 1985 is an Act of the Parliament of the United Kingdom of Great Britain and Northern Ireland, enacted in 1985, which enables companies to be formed by registration, and sets out the responsibilities of companies, their directors and secretaries and the Companies Act 2006 The Companies Act 2006 is an Act of the Parliament of the United Kingdom of Great Britain and Northern Ireland regulating companies within that jurisdiction. It has the distinction of being the longest in British Parliamentary history: with 1,300 sections and covering nearly 700 pages, and containing no fewer than 15 schedules. (The list of.^[3] Reportedly, "a company registered under this Act has limited liability: its owners (the shareholders) have no financial liability in the event of winding up the affairs of the company, but they might lose the money already invested in it".^[3] In the USA, companies are registered in a particular state—Delaware Delaware ( /ˈdɛləwɛər/ DEL-ə-wair), officially The State of Delaware, is a state located on the Atlantic Coast in the Mid-Atlantic region of the United States. The state takes its name from Thomas West, 3rd Baron De La Warr, a British nobleman and Virginia's first colonial governor, after whom (what is now called) Cape Henlopen was being especially favoured—and become Incorporated (Inc). ^[3]

In North America North America is the northern continent of the Americas, situated in the Earth's northern hemisphere and almost totally in the western hemisphere. It is bordered on the north by the Arctic Ocean, on the east by the North Atlantic Ocean, on the southeast by the Caribbean Sea, and on the west by the North Pacific Ocean; South America lies to the, two of the earliest companies were The London Company The London Company was an English joint stock company established by royal charter by James I of England on April 10, 1606 with the purpose of establishing colonial settlements in North America. It was not founded as a joint stock company, but became one under the 1609 charter. It was one of two such companies, along with the Plymouth Company, (also called the Charter of the Virginia Company of London)—a English England /ˈɪŋɡlənd/ is a country that is part of the United Kingdom. Its inhabitants account for more than 83% of the total UK population, while its mainland territory occupies most of the southern two-thirds of the island of Great Britain. England is bordered by Scotland to the north, Wales to the west and the North Sea, Irish Sea, Celtic Sea, joint stock company A joint stock company is a type of business entity: it is a type of corporation or partnership between two companies. Certificates of ownership (or stocks) are issued by the company in return for each contribution, and the shareholders are free to transfer their ownership interest at any time by selling their stockholding to others established by royal charter by James I of England James VI & I was King of Scots as James VI from 1567 to 1625, and King of England and Ireland as James I from 1603 to 1625 on April 10 April 10 is the 100th day of the year in the Gregorian calendar. There are 265 days remaining until the end of the year, 1606 Year 1606 was a common year starting on Sunday (link will display the full calendar) of the Gregorian calendar (or a common year starting on Wednesday of the 10-day slower Julian calendar) with the purpose of establishing colonial settlements in North America North America is the northern continent of the Americas, situated in the Earth's northern hemisphere and almost totally in the western hemisphere. It is bordered on the north by the Arctic Ocean, on the east by the North Atlantic Ocean, on the southeast by the Caribbean Sea, and on the west by the North Pacific Ocean; South America lies to the—and Plymouth Company The Plymouth Company was an English joint stock company founded in 1606 by James I of England with the purpose of establishing settlements on the coast of North America that was granted an identical charter as part of the Virginia Company The Virginia Company refers collectively to a pair of English joint stock companies chartered by James I on 10 April 1606 with the purposes of establishing settlements on the coast of North America. The two companies, called the "Virginia Company of London" and the "Virginia Company of Plymouth" (or Plymouth Company) operated. The London Company was responsible for establishing the Jamestown Settlement Jamestown, located on Jamestown Island in the Virginia Colony, was founded on May 14, 1607. It is commonly regarded as the first permanent English settlement in what is now the United States of America, following several earlier failed attempts, including the Lost Colony of Roanoke. It was founded by the London Company , headquartered in London, the first permanent English settlement in the present United States in 1607, and in the process of sending additional supplies, inadvertently settled the Somers Isles, alias Bermuda Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, it is situated around 1,770 kilometres (1,100 mi) northeast of Miami, Florida, and 1,350 kilometres (840 mi) south of Halifax, Nova Scotia, Canada. The nearest landmass is Cape Hatteras, North Carolina, about 1,030 kilometres (640, the oldest-remaining English colony, in 1609.

Types

For a country-by-country listing, see Types of business entity There are many types of business entity defined in the legal systems of various countries. These include corporations, partnerships, sole traders and other specialized types of organization. Some of these types are listed below, by country.

There are various types of company that can be formed in different jurisdictions, but the most common forms of company (generally formed by registration under applicable companies legislation) are:

• A company limited by guarantee In British or Irish company law, a company limited by guarantee is an alternative type of corporation used primarily for non-profit organisations that require legal personality. A guarantee company does not usually have a share capital but instead has members who act as guarantors instead of shareholders, as happens with other types of companies. 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 insolvent liquidation In law, liquidation refers to the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation can also be referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation. The process of liquidation also arises when customs, an authority or, but otherwise they have no economic rights in relation to the company. This type of company is common in England England /ˈɪŋɡlənd/ is a country that is part of the United Kingdom. Its inhabitants account for more than 83% of the total UK population, while its mainland territory occupies most of the southern two-thirds of the island of Great Britain. England is bordered by Scotland to the north, Wales to the west and the North Sea, Irish Sea, Celtic Sea,.
• A company limited by shares A private company limited by shares is a type of company incorporated under the laws of England and Wales, Scotland, that of certain Commonwealth countries and the Republic of Ireland. It has shareholders with limited liability and its shares may not be offered to the general public, unlike those of public limited companies. The most common form of 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."^[1] This type of company is common in England England /ˈɪŋɡlənd/ is a country that is part of the United Kingdom. Its inhabitants account for more than 83% of the total UK population, while its mainland territory occupies most of the southern two-thirds of the island of Great Britain. England is bordered by Scotland to the north, Wales to the west and the North Sea, Irish Sea, Celtic Sea,.
• 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.^[4]
• A limited-liability company A limited liability company in the law of the vast majority of United States jurisdictions is a legal form of business company that provides limited liability to its owners. Often incorrectly called a "limited liability corporation" (instead of company), it is a hybrid business entity having certain characteristics of both a corporation. "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.^[1]
• An unlimited liability company An unlimited company is a company where the liability of the members is unlimited - that is, they are liable to contribute whatever sums are required to pay the debts of the company should it go into liquidation. A company where the liability of members for the debts of the company are unlimited. Today these are only seen in rare and unusual circumstances.

Less commonly seen types of companies are:

• Companies formed by letters patent. Most corporations by letters patent are corporations sole In English Law, a corporation sole is a legal entity consisting of a single incorporated office, occupied by a single ('sole') man or woman. This allows a corporation (usually a religious corporation) to pass vertically in time from one office holder to the next successor-in-office, giving the position legal continuity with each subsequent office and not companies as the term is commonly understood today.
• charter corporations A royal charter is a charter granted by a Sovereign to create institutions or other forms of incorporated bodies (such as a city, company, or university). In the British legal tradition a royal charter is in the form of letters patent. Historically, royal charters were granted as an exercise of the royal prerogative, and were generally used to. Before the passing of modern companies legislation, these were the only types of companies. Now they are relatively rare, except for very old companies that still survive (of which there are still many, particularly many British banks), or modern societies that fulfil a quasi regulatory function (for example, the Bank of England The Bank of England is the central bank of the United Kingdom and is the model on which most modern, large central banks have been based. Since 1946 it has been a state-owned institution. It was established in 1694 to act as the English Government's banker, and to this day it still acts as the banker for the UK Government. The Bank has a monopoly is a corporation formed by a modern charter).
• Statutory Companies. Relatively rare today, certain companies have been formed by a private statute passed in the relevant jurisdiction.

Note that "Ltd after the company's name signifies limited, and PLC (public limited company A public limited company is a type of limited company in the United Kingdom and the Republic of Ireland which is permitted to offer its shares to the public. All public limited companies' names end in "p.l.c") indicates that its shares are widely held."^[3]

In legal parlance, the owners of a company are normally referred to as the "members". In a company limited by shares, this will be the shareholders A mutual shareholder or stockholder is an individual or company that legally owns one or more shares of stock in a joint stock company. A company's shareholders collectively own that company. Thus, the typical goal of such companies is to enhance shareholder value. In a company limited by guarantee, this will be the guarantors. Some offshore jurisdictions An offshore financial centre , although not precisely defined, is usually a low-tax, lightly regulated jurisdiction which specializes in providing the corporate and commercial infrastructure to facilitate the use of that jurisdiction for the formation of offshore companies and for the investment of offshore funds have created special forms of offshore company Examples of offshore companies include the International Business Company . More recently new legislation has been enacted in a number of Jurisdictions, such as the British Virgin Islands, to replace the IBC type of company with the Business Company (BC) in a bid to attract business for their jurisdictions. Examples include "segregated portfolio companies Only the assets of each segregated portfolio are available to meet liabilities to creditors in respect of that segregated portfolio; where there are liabilities arising from a matter attributable to a particular segregated portfolio, the creditor may only have recourse to the assets attributable to that segregated portfolio" and restricted purpose companies.

There are however, many, many sub-categories of types of company that can be formed in various jurisdictions in the world.

Companies are also sometimes distinguished for legal and regulatory purposes between public companies A public limited company is a type of limited company in the United Kingdom and the Republic of Ireland which is permitted to offer its shares to the public. All public limited companies' names end in "p.l.c" and private companies The term privately held company refers to the ownership of a business company in two different ways: first, referring to ownership by non-governmental organizations; and second, referring to ownership of the company's stock by a relatively small number of holders who do not trade the stock publicly on the stock market. Less ambiguous terms for a. Public companies are companies whose shares can be publicly traded, often (although not always) on a regulated stock exchange A stock exchange, is a corporation or mutual organization which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and. Private companies do not have publicly traded shares, and often contain restrictions on transfers of shares. In some jurisdictions, private companies have maximum numbers of shareholders.

See also

• Companies law Companies law is the field of law concerning companies and other business organizations. It is an establishment formed to carry on commercial enterprises. This includes corporations, partnerships and other associations which usually carry on some form of economic or charitable activity. The most prominent kind of company, usually referred to as a &
• Corporate law Corporate law is the law of the most dominant kind of business enterprise in the modern world. Corporate law is the study of how shareholders, directors, employees, creditors, and other stakeholders such as consumers, the community and the environment interact with one another under the internal rules of the firm
• Corporation A corporation is a legal entity separate from the persons that own it. In British tradition it is the term designating a body corporate, where it can be either a corporation sole or a corporation aggregate (involving more persons). In American and, increasingly, international usage, the term denotes a body corporate formed to conduct business, and
• Guild
• Joint-stock company
• Leading firms by activity
• List of companies by revenue
• List of corporations by market capitalization
• List of oldest companies
• Loan guarantee
• Partnership
• Sole proprietorship
• Trust (law)
• Voluntary association

References

1. ^ ^{a b c d} Black's Law and lee Dictionary. Second Pocket Edition. Bryan A. Garner, editor. West. 2001.
2. ^ Harper, Douglas. "company". Online Etymology Dictionary. http://www.etymonline.com/index.php?term=company.
3. ^ ^{a b c d e} "Company." Crystal Reference Encyclopedia. Crystal Reference Systems Limited. 27 Nov. 2007. Reference.com
4. ^ Companies Act 2006

Further reading

• Dignam, A and Lowry, J (2006) Company Law, Oxford University Press ISBN 978-0-19-928936-3.
• John Micklethwait and Adrian Wooldridge, The Company: a Short History of a Revolutionary Idea (New York: Modern Library, 2003)

Categories: Lists of companies by industry | Legal entities | Companies

See Also:

• Companies

What Links Here:

Recently Viewed Pages:

• Professional Conference Organiser: Blogs
• Sitemap.xml
• Standard Occupational Classification System: Blogs
• Financial Markets and Portfolio Management
• Venice: Videos
• Computers: Software: Accounting: Billing: Directory

Most Popular Pages:

• Sitemap.xml
• Professional Conference Organiser: Blogs
• Venice: Videos
• Computers: Software: Accounting: Billing: Directory
• Standard Occupational Classification System: Blogs
• Companies: Encyclopedia

Related 'Companies' Searches: