Which theory of corporate personality treats the corporate name as shorthand for the legal relations of…
The bracket theory, also called the symbolist theory, treats the corporation's name as a shorthand for the people and legal relations grouped under it. The fiction, realist…
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Which theory of corporate personality treats the corporate name as shorthand for the legal relations of the people behind the corporation?
Answer and explanation
Correct answer B
The bracket theory, also called the symbolist theory, treats the corporation's name as a shorthand for the people and legal relations grouped under it.
The fiction, realist and concession accounts respectively emphasise artificial personality, the reality of the group, and recognition by the state.
Option feedback
Option A
The fiction theory treats the corporation as an artificial legal person. The shorthand account instead focuses on the people behind it.
Option B
The bracket theory treats the corporate designation as shorthand for the legal relations of the underlying people.
Option C
The realist theory treats the organised group as a real social entity in its own right.
Option D
The concession theory explains corporate personality by reference to recognition or a grant by the state.
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