COMPANY
company. 1. A corporation — or, less commonly, an association, partnership, or union — that carries on a commercial or industrial enterprise. 2. A corporation, partnership, association, joint-stock company, trust, fund, or organized group of 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. Investment Company Act § 2(a)(8) (15 USCA § 80a-2(a)(8)). — Abbr. co.; com.
bonding company.A company that insures a party against a loss caused by a third party.
controlled company.A company that is under the control of an individual, group, or corporation that owns most of the company’s voting stock. Cf. subsidiary corporation under CORPORATION.
dead-and-buried company.A business that has dissolved, leaving no assets.
deposit company.An institution whose business is the safekeeping of securities or other
valuables deposited in boxes or safes leased to the depositors. See DEPOSITARY; DEPOSITORY. development-stage company.Securities. A company that devotes substantially all of its efforts to establishing a new business in which the principal operations either have not yet begun or have begun but are not generating significant revenue.
diversified holding company.A holding company that controls several unrelated companies or
diversified investment company.An investment company that by law must invest 75% of its assets, but may not invest more than 5% of its assets in any one company or hold more than 10% of the voting shares in any one company.
face-amount certificate company.An investment company that is engaged or proposes to engage in the business of issuing face-amount certificates of the installment type, or that has been engaged in this business and has such a certificate outstanding. See investment company.
growth company.A company whose earnings have increased at a rapid pace and that usu.
directs a high proportion of income back into the business.
guaranty company.See surety company.
holding company.A company formed to control other companies, usu. confining its role to owning stock and supervising management. [Cases: Corporations 3. C.J.S. Corporations §§ 5–7,
62.]
investment company.A company formed to acquire and manage a portfolio of diverse assets by investing money collected from different sources. • The Investment Company Act of 1940 defines the term as an issuer of securities that (1) is, holds itself out to be, or proposes to be engaged primarily in the business of investing, reinvesting, or trading in securities; (2) is engaged or proposes to engage in the business of issuing face-amount certificates of the installment type, or has been engaged in this business and has such a certificate outstanding; or (3) is engaged or proposes to engage in the business of investing, reinvesting, owning, holding, or trading in securities, and owns or proposes to acquire investment securities having a value exceeding 40% of the value of the issuer’s total assets (exclusive of government securities and cash items) on an unconsolidated basis. 15 USCA § 80a-2(a)(16). — Also termed investment trust. See REAL-ESTATE INVESTMENT TRUST; MUTUAL FUND. [Cases: Securities Regulation
211–222. C.J.S. Securities Regulation §§ 332–359.]
joint-stock company. 1. An unincorporated association of individuals possessing common capital, the capital being contributed by the members and divided into shares, of which each member possesses a number of shares proportionate to the member’s investment. [Cases: Joint-Stock Companies and Business Trusts 5. C.J.S. Business Trusts § 14; Joint Stock Companies§ 7.] 2. A partnership in which the capital is divided into shares that are transferable without the express consent of the partners. — Also termed joint-stock association; stock asso-ciation. [Cases: Partnership 224. C.J.S. Partnership § 222.]
“The joint stock association or company developed early in English company law, the term being used to dis-tinguish companies which operated on a joint account and with a ‘joint stock’ (in trade) of their members from companies (now obsolete) each member of whom traded on one’s separate account with one’s own stock in trade…. In American jurisdictions, the joint stock association is generally an unincorporated business enterprise with ownership interests represented by shares of stock.” Henry G. Henn & John R. Alexander, Laws of Corporations § 50, at 109 (3d ed. 1983).
limited company.A company in which the liability of each shareholder is limited to the
amount individually invested. • A corporation is the most common example of a limited company. 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. — Abbr. L.L.C. — Also termed limited-liability corporation. [Cases:
Corporations 3. C.J.S. Corporations §§ 5–7, 62.]
management company.Any investment company that is neither a face-amount certificate company nor a unit-investment trust. See investment company; face-amount certificate company; unit-investment trust under TRUST.
mutual company.A company that is owned by its customers rather than by a separate group of stockholders. • Many insurance companies are mutual companies, as are many federal savings-and-loan associations. See MUTUAL INSURANCE COMPANY. [Cases: Building and Loan Associations 1; Corporations 3; Insurance 1121. C.J.S. Building and Loan Associations,
Savings and Loan Associations, and Credit Unions §§ 2–4; Corporations §§ 5–7, 62; Insurance §§
99, 109.] parent company.See parent corporation under CORPORATION.
personal holding company.A holding company that is subject to special taxes and that usu. has a limited number of shareholders, with most of its revenue originating from passive income such as dividends, interest, rent, and royalties. [Cases: Internal Revenue 3850.1–3858, 4120.
C.J.S. Internal Revenue §§ 383–386.] railroad company.See railroad corporation under CORPORATION.
reporting company.A company that, because it issues publicly traded securities, must comply with the reporting requirements of the Securities Exchange Act of 1934. [Cases: Securities
Regulation 35.23. C.J.S. Securities Regulation §§ 115–116.] safe-deposit company.See DEPOSITARY(1). small-business investment company.See SMALL-BUSINESS INVESTMENT COMPANY.
surety company.A company authorized to engage in the business of entering into guaranty and suretyship con-tracts and acting as a surety on bonds, esp. bail, fidelity, and judicial bonds. — Also termed guaranty company. [Cases: Bail 60; Principal and Surety 52. C.J.S. Bail; Release and Detention Pending Proceedings§§ 3, 101; Principal and Surety §§ 292, 295.]
title company.A company that examines real-estate titles for any encumbrances, claims, or other flaws, and issues title insurance. — Also termed title-guaranty company. See TITLE
SEARCH. [Cases: Abstracts of Title 2. C.J.S. Abstracts of Title § 4.]
trust company.A company that acts as a trustee for people and entities and that sometimes also operates as a commercial bank. — Also termed (if incorporated) trust corporation. See TITLE(1), (2). [Cases: Banks and Banking 310–323. C.J.S. Banks and Banking §§ 625–649.] [Blacks Law 8th]