PDSnet Glossary

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Definition

An organisation which has a legal personality such as a company. This implies that it is responsible for its own management and debts (and not the investors who own the shares in it). The opposite of a "natural" person of flesh and blood. Obviously, all companies (private, public and listed) are juristic persons and so can continue to exist beyond the lives of their employees and owners. The separation of ownership from management which occurs in a company together with the limited liability of shareholders has made it possible to accumulate the huge quantities of capital that were necessary to undertake the massive projects that were made possible by the industrial revolution. And the legal concept of a juristic person as opposed to a natural person is what made this possible.

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