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company definition - legal

n

A group of individuals, such as an association, corporation, partnership, or union, associated for the purpose of carrying out, maintaining, or performing a commercial or industrial enterprise.
holding company
A company, usually a corporation, organized to influence or control other companies by such means as owning large amounts of stock in other corporations. See also company.
joint stock company
An unincorporated company whose owners pool capital into a common fund in exchange for a number of shares proportionate to their respective investments. However, unlike a partnership, the shares can be transferred without the express consent of the other owners and, unlike a corporation, the owners are personally liable to the companyÂ’s creditors if the company cannot pay its bills. See also company.
limited company
A company, usually a corporation, in which the investor or shareholderÂ’s liability is limited to the amount invested or the value of the personÂ’s share.
limited liability company (LLC)
An entity that blends features of a corporation and a partnership, but is neither; owners are called “members” and may consist of one or more individuals, corporations, or even other LLCs. Members have some of the same protection as stockholders in a corporation, especially, no personal liability.
parent company
A corporation that owns more than half of the voting stock of another corporation. Also called parent corporation. See also affiliate, company, corporation, and subsidiary.
personal holding company
A holding company, usually with a limited number of shareholders and with over half of its income coming from such passive sources as capital gains, dividends, interest, rent, and royalties. The income is subject to a special tax in order to prevent individuals from avoiding income taxes by placing their assets in such corporations.
trust company
A company, usually incorporated, that provides trust services, such as administering trusts and managing funds and property held in trust. Trust companies sometimes operate as commercial banks as well.

Webster's New World Law Dictionary Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.

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