While shareholders do not technically own the corporation directly … Shareholders are the legal owners of a corporation
It seems to me you’re trying to have it both ways.
saying shareholders stand on equal footing with the corporation’s bondholders, suppliers, and employees is absolutely nonsense
I read this to mean that everyone in those groups has some kind of contractual understanding with the corporation, and none of them have property rights. That the shareholders aren’t, legally speaking, special.
It is a legal thing, shareholders own the corporation, but not the companies physical assets. So a shareholder couldn’t walk into a business and take something and say “I own this”. They can however vote to close a corporation or fire the board and form a new one.
The shareholders legally are special, but it doesn’t always work in their favor. For instance, they are the last to be paid.
I am no expert, but I have been an Executive Director in the past. I was just talking about the concept, which as you can tell, is pretty complex.
It seems to me you’re trying to have it both ways.
I read this to mean that everyone in those groups has some kind of contractual understanding with the corporation, and none of them have property rights. That the shareholders aren’t, legally speaking, special.
I’m just some rube on the internet. I’m not really in a position to argue the fine points of corporate law. The author of this article, though, was.
It is a legal thing, shareholders own the corporation, but not the companies physical assets. So a shareholder couldn’t walk into a business and take something and say “I own this”. They can however vote to close a corporation or fire the board and form a new one.
The shareholders legally are special, but it doesn’t always work in their favor. For instance, they are the last to be paid.
I am no expert, but I have been an Executive Director in the past. I was just talking about the concept, which as you can tell, is pretty complex.