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It is true. The company is owned by its shareholders, collectively.
by darawk 7y ago
It is true. The company is owned by its shareholders, collectively.
- EliRivers 7y agoEven if they did "own" the company (which they don't, unless you choose to define the terms identically - "owner" and "shareholder" are not synonymous), just owning a company doesn't mean all the earnings belong to you. Here's some legal people on the subject; https://www.lawschool.cornell.edu/academics/clarke_business_law_institute/corporations-and-society/Common-Misunderstandings-About-Corporations.cfm https://www.lawschool.cornell.edu/academics/clarke_business_... Key phrases include "shareholders do not own business corporations, nor do they own the assets of the corporate entities". Now, there are other opinions, but the very fact that this is an ongoing discussion suggests strongly that it is not as cut and dried as you claim.
- deleted 7y ago[deleted]
- darawk 7y agoThey do, collectively, own most companies. It is possible to create shares that do not represent an ownership interest, but most companies are structured such that they do. Shareholders are generally able to reconstitute the board, which can appoint a CEO, who is in control over the assets of that company. They may then appoint a board, who would appoint a CEO who would liquidate the assets and return them as a dividend to the shareholders. That is the sense in which they own the company. Now, some companies sell shares that don't have voting rights (e.g. Google, Facebook). Those are a bit more nuanced. Though even in those cases, there are voting shares, they're just not traded in the public markets. So, the statement that the company is owned/controlled by its shareholders remains correct.