Corporation Aggregate: Everything You Need to Know
A corporation aggregate refers to the group of people who make up a corporation.3 min read
A corporation aggregate refers to the group of people who make up a corporation. Corporations are legal entities that exist separately and independently from the individuals who constitute it. This is in contrast to a simple partnership or unincorporated club, which is not a separate legal entity from its members/partners.
Many corporations continue to exist even when its incorporators cease to be involved for any reason, including death. However, some corporations may exist for a limited life span due to provisions specified during their creation.
Features of a Corporation Aggregate
A corporation aggregate refers to the group of people who unite to form one body under special denomination. This body has an artificial form of perpetual succession and is legally vested with the ability to act and, in some respects, have the same rights as an individual.
A corporation aggregate can:
- Grant property
- Own property
- Enter into contractual obligations
- Sue and be sued
- Enjoy immunities and privileges
It can also express political rights in line with the designs, intent, and provisions of its constitution.
A corporation aggregate can do all the above based on the powers granted to it at the point of creation or during its existence. Examples of corporation aggregates include chartered universities, railway corporations, municipal corporations, etc.
What is a Corporation Sole?
A corporation sole refers to a series of successive individuals who hold the same title or public office. A corporation sole is a single individual who, within the rights of function or office, has the ability to take, hold, grant, or purchase land and other personal properties.
Some examples of corporations sole include the Minister of Agriculture, the Minister of Health, the Post-Master General, the Crown, and Ecclesiastical corporations such as Bishops.
Since a corporation sole's succession is perpetual, its capacities are granted to the individual holding office and future successors. This, however, does not mean that there will be uninterrupted, continuous succession since there may be periods where there are vacancies within the corporation sole; this could be due to a delay in succession or the lack of a suitable successor.
Elements of a Corporation's Constitution
One of the main elements in a corporation's legal constitution is the continuity of its identity. This means that the original members and their successors are viewed as one.
When an obligation or liability arises during the tenure of the original members of an aggregate or sole corporation, it remains binding on all subsequent successors, even if they are not yet named.
Characteristics of Corporation Sole and Corporation Aggregate
There are key differences between a corporation sole and corporation aggregate:
- A corporation sole is an incorporated series of successive individuals.
- Examples include entities such as the King of Nepal, King of England, a Governor, District Collector, Prime Minister, President of Mexico, etc.
- Although the corporate sole is really a fictitious person, the position is filled by a human person.
- A corporate sole refers to the person occupying the position. Only one person may occupy the position at any point in time.
- The corporate sole is more permanent than a corporate aggregate.
- A corporate sole is a public office with executive character with the primary objective of ruling a country or territory.
- The individual holding the position of corporate sole has two sets of properties. The first set belongs to the state and devolves to the corporate sole's successors while the other belongs to the person goes to their legal heirs.
- This refers to an incorporated group of co-existing individuals.
- It has multiple members at any given time.
- It is less permanent than a corporate sole.
- Examples include public undertaking corporations, multi-national corporations, public limited companies, and private limited companies.
- A corporation aggregate is a fictitious body and can also be referred to as “body's Politique.”
- Corporations aggregate are private offices constituted for the primary purpose of doing business.
- A corporation aggregate has its own debts, properties, and liabilities for which its members are not responsible.
- Its members have their individual personal assets. The losses, profits, and debts of the corporate aggregate are related only to the individual amount of share held by each member.
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