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Company

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Title: Company  
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Company

A company is an skills or resources to achieve specific, declared goals. Companies take various forms such as:

A company or association of persons can be created at law as legal person so that the company in itself can accept Limited liability for civil responsibility and taxation incurred as members perform (or fail) to discharge their duty within the publicly declared "birth certificate" or published policy.

Because companies are legal persons, they also may associate and register themselves as companies – often known as a corporate group. When the company closes it may need a "death certificate" to avoid further legal obligations.

Contents

  • Meanings and definitions 1
    • Etymology 1.1
    • United States 1.2
    • United Kingdom 1.3
  • Types 2
  • Largest companies 3
  • See also 4
  • References 5
  • Further reading 6

Meanings and definitions

A company can be defined as an "artificial person", invisible, intangible, created by or under law, with a discrete legal entity, perpetual succession and a common seal. It is not affected by the death, insanity or insolvency of an individual member.

Etymology

The English word company has its origins in the Old French military term compaignie (first recorded in 1150), meaning a "body of soldiers",[1] and originally from the Late Latin word companio "companion, one who eats bread [pane] with you", first attested in the Lex Salica as a calque of the Germanic expression *gahlaibo (literally, "with bread"), related to Old High German galeipo "companion" and Gothic gahlaiba "messmate". By 1303, the word referred to trade guilds. Usage of company to mean "business association" was first recorded in 1553, and the abbreviation "co." dates from 1769. (French uses the equivalent abbreviation cie.)

United States

In the United States, a company may be a "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".[2] In the US, a company is not necessarily a corporation.[3]

United Kingdom

In English law and in legal jurisdictions based upon it, a company is a body corporate or corporation company registered under the Companies Acts or similar legislation.[4] Common forms include:

In Britain a partnership is not legally a company, but may sometimes be referred to informally as a company. It may be referred to as a firm.

Types

For a country-by-country listing, see Types of business entity.
  • A company limited by guarantee. 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, 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.
  • A company limited by shares. 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."[2] This type of company is common in England and many English-speaking countries. A company limited by shares may be a
  • 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.[5]
  • 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.[2] 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".[6]
  • 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 veil of incorporation does not apply.

Less common types of companies are:

  • Companies formed by letters patent. Most corporations by letters patent are corporations sole and not companies as the term is commonly understood today.
  • Charter corporations. 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 fulfill a quasi regulatory function (for example, the Bank of England 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 company, and PLC (public limited company) indicates that its shares are widely held."

In legal parlance, 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 shareholders. In a company limited by guarantee, this will be the guarantors. Some offshore jurisdictions have created special forms of offshore company in a bid to attract business for their jurisdictions. Examples include "segregated portfolio companies" 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 and private companies. Public companies are companies whose shares can be publicly traded, often (although not always) on a stock exchange which imposes listing requirements/Listing Rules as to the issued shares, the trading of shares and future issue of shares to help bolster the reputation of the exchange or particular market of an exchange. 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.

A parent company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors; the second company being deemed as a subsidiary of the parent company. The definition of a parent company differs by jurisdiction, with the definition normally being defined by way of laws dealing with companies in that jurisdiction.

Largest companies

The following table illustrates companies by size and country of origin. All the values have been publicly revealed in the respective company annual report and are recorded as of 2014.

Company name Industry Sales
(US$ billion)
Walmart Retail 485,651
Royal Dutch Shell Oil and Gas 421,105
Goldman Sachs Financial Services 460,000
Exxon Mobil Oil and Gas 453,100
Barclays Financial Services 454,900
Sinopec Oil and Gas 411,700
BP Oil and Gas 370,900
Saudi Aramco Oil and Gas 356,000
China National Petroleum Oil and Gas 328,500
Deutsche Bank Financial Services 320,000
Vitol Commodities 303,000
State Grid Corporation of China Electric Power 265,000
Volkswagen Automotive 254,000
Chevron Oil and Gas 242,000
Total Oil and Gas 240,000
Toyota Automotive 222,000
Glencore Commodities 214,000
ING Financial Services 197,900
Samsung Computers 187,000
E.ON Electric Power 174,000
Japan Post Holdings Conglomerate 168,000
Eni Oil and Gas 167,000
Phillips 66 Oil and Gas 166,000
Gazprom Oil and Gas 164,000
Berkshire Hathaway Conglomerate 162,000
Apple Computers 156,000
General Motors Automotive 152,000
Bank of America Financial Services 150,480
Daimler Automotive 150,000
Industrial & Commercial Bank of China Financial Services 148,700
General Electric Conglomerate 147,000
Citigroup Financial Services 146,560
HSBC Financial Services 146,100
Petrobras Oil and Gas 144,000
Allianz Financial Services 140,000
Enron Conglomerate 137,718
Agricultural Bank of China Financial Services 136,400
Cargill Commodities 136,000
Ford Automotive 134,000
Lukoil Oil and Gas 134,000
JX Holdings Oil and Gas 130,000
GDF Suez Electric Power 128,000
AT&T Telecommunications 127,000
Nippon Telegraph & Telephone Telecommunications 127,000
BNP Paribas Financial Services 126,000
Valero Energy Oil and Gas 126,000
PDVSA Oil and Gas 125,000
McKesson Healthcare 123,000
Trafigura Commodities 122,000
China Construction Bank Financial Services 121,300
HP (Hewlett-Packard) Computers 120,000
AXA Financial Services 118,000
Hitachi Computers 117,000
JP Morgan Financial Services 116,400
Foxconn Computers 114,000
Nissan Automotive 114,000
Tesco Retail 114,000
AIG Financial Services 113,190
Statoil Oil and Gas 112,000
Pemex Oil and Gas 111,000
Koch Industries Conglomerate 110,000
Verizon Telecommunications 110,000
Santander Financial Services 109,700
Exor Conglomerate 109,000
Royal Bank Scotland Financial Services 108,500
Societe Generale Financial Services 108,000
Cardinal Health Healthcare 107,000
CVS Caremark Retail 107,000
IBM Computers 107,000
UBS Financial Services 105,590
Bank of China Financial Services 105,100
Carrefour Retail 105,000
Assicurazioni Generali Financial Services 104,000
BASF Manufacturing 104,000
Kuwait Petroleum Oil and Gas 104,000
Credit Suisse Financial Services 103,720
Enel Electric Power 103,000
United Health
Siemens Conglomerate 101,000
Nestle Agribusiness 100,000
Tata Conglomerate 100,000

See also

References

  1. ^ Harper, Douglas. "company".  
  2. ^ a b c Black's Law and lee Dictionary. Second Pocket Edition. Bryan A. Garner, editor. West. 2001.
  3. ^ "Company legal definition of company". TheFreeDictionary.com. 
  4. ^ Companies Act 2006, Section 1
  5. ^ Companies Act 2006
  6. ^ root. "Limited Liability Company (LLC) Definition - Investopedia". Investopedia. 

Further reading

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