This document discusses various theories of corporate personality: - Fiction theory views the corporation as a legal fiction created by law. Realistic theory sees it as a real psychic entity recognized by law. - Kelson's theory says legal personality is a fiction used to assign legal rights and duties. Purpose theory says personality depends on the corporation's purpose. - Bracket theory restricts rights/duties to the corporation rather than individual members. Organism theory sees the corporation as a living organism. - Ownership theory argues rights belong to humans, not corporations, which are property. Concession theory says personality comes from the sovereign's concession in a charter.

2. Research Objective
 To Understand Basic concept and foundation of Corporate Personality
 To Understand different theories of Corporate Personality given by Named Jurists
 To Immaculate the analyses out of different theories of Corporate Personality

3. In Legal Personality we have known of two
types of person:
1. Natural person: A human being is
being is Natural Person
2. Legal Person: Institution, Funds/Estate,
Corporation

4. CORPORATION
CORPUS:
Body
A corporation or Company is an artificial or fictitious Person created by the personification of a
group or a series of individuals. The individuals forming the corpus of the corporation is called its
members.

5. CORPORATION AGGREGATE:
A corporation aggregate refers to
the group of people who make up a
corporation.
A distinct legal personality is given to a
group or collection of persons who
become united to accomplish a task or
purpose.
CORPORATION SOLE:
A corporation sole is a legal entity
consisting of a single ("sole")
incorporated office, occupied by a
single ("sole") natural person.
Ex. Prime Minister, CAG, DM
Basically holds any public office.

7. FICTION THEORY:
• In this theory it is understood that
beside human whoever have gotten
legal personality are given through
fiction, who are understood as
imaginary person.
• “persona ficta”
• Promulgated by Pope Innocent IV
• Accd to Savigny: "a personality is
attached to corporations, institutions
and funds by a pure legal fiction. The
Personality of Corporation is different
from the personality of its members,
that means there is a double fiction in
the case of Corporation. “
• Accd to Salmond: “corporation is
nothing more than the outcome of
metaphor and fiction.”
• The Element of Corpus and Animus is
absent

8. SALOMON v. A SALOMAN Co Ltd.

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TEMPLATES
Kelson’s Theory:
• Kelson regards legal personality itself as fiction, a convenient peg
upon which to hang legal rights and duties.
• “A group of persons or successive series of persons or an idol is legal
person because it is so imagined by a fiction of the law.”
• A WELCOME THEORY
• Kelsen shows that there is no significant difference between the legal
personality of an individual and that of corporation, for in the case of
both what is known as legal personality is nothing but a complex of
norms,

10. Realistic Theory
Gierke is a leading exponent of realist Theory which refutes the fiction
theory
The realistic theory maintains that a corporation has a real psychic
personality recognized, and not created, by the law. The realist theory
is also known as the sociological theory of the group personality of the
corporation
Contrast of Fiction theory.
The element of Corpus and Animus is present
Where Corpus, corporation seal; and Animus, Individual Will and
Group Will
Not a fictitious creature of the law but a psychic personality recognized
by the law.

11. PURPOSE THEORY:
• This theory was propounded by German jurist Brinz and Barker.
• According to this theory personality is only enjoyed by human beings, they
alone can be the subjects of rights and duties.
• Every corporation is build for a purpose and fulfil it.
• Any corporation granting legal personality is not guaranteed fundamental
rights.
• All juristic or artificial persons are merely legal devices for protecting or giving
effect to some real purpose, e.g., a trade union is the continuing fund
concerned and the purposes for which it is established.

12. THE BRACKET
THEORY
• The bracket theory is also known as
Jhering‟s theory, as Jhering was its
exponent. It was developed in
France by Vareilles-Sommieres.
• Corporation is Termed and restricted
into Bracket where rights and duties
aren’t provided to each member or
each body whereas it is given to whole
of bracket.
• Also Known as Symbolist theory, cause
giving the corporation a symbol and
working around it, is what corporate
personality persist.

13. ORGANISMTHEORY

14. || OWNERSHIP THEORY ||
• The personality of the corporation asserts that legal
rights can be had by human beings and not by
corporations.
• According to this theory, the so-called juristic person
that is the corporation is not a person at all. It is
“subject less property” destined for a particular
purpose, according to Planiol, subject less rights are
“legal monsters”.
• “Collective ownership is, so to speak, hidden from
our eyes by the existence of fictitious beings to which
we ascribe, at least in a certain measure, the
attributes of personality, which are reputed owners,
creditors or debtors, which make contracts, and
sustain legal proceedings like true persons.”

15. CONCESSION THEORY
A chartered company is legal person because the sovereign so ordained in his charter to treat it as person in law.
the concession theory of the personality of the corporation, which is associated to the fiction theory, however not
indistinguishable with it, says that legal personality can observe from law alone.
It is by beauty or concession alone that
the legal personality is in all actuality,
made or perceived. This theory is
expounded by Savigny and closely allied
to the fiction theory is that the
personality of a corporation is a matter
of mere occasion by the sovereign.
A chartered company is legal person because the sovereign so ordained in his charter to treat it as person in law. A
company registered under the Companies Act or cooperative societies under Cooperative Society Act is a legal person
because the respective statutes provide that it shall be treated as legal person. The rights and duties of the legal
person so constituted are those which the law has chosen to concede to him. They have unlike natura persons, only
such rights as the law specifically confers and such duties as the law imposes.

16. ANALYSIS
The ramifications of the fiction theory resemble juridical people
are one of the individuals who exist with the end goal of just
juridical.
As rights must be drilled by a genuine individual; then the
corporation should be a genuine and authentic not imaginary
individual. Purpose and Utilization of the concession theory are
Political purpose to strengthen the state.
The fiction theory of juristic personality is set up on cerebrum
exploration of man which is inevitable piece of human nature. In its
absolute best design, this completely freed from any political effects
anyway the concession theory which is gotten from fiction theory
basically has a political idea which targets strengthening the power
of the State, subsequently enabling it to keep the total gatherings
totally control
The concession theory was generally used to expect command over
the property during the French Revolution.

17. • Each of these theories contains element of truth, none can by itself adequately
interpret the phenomenon of juristic personality.
• The reason is that corporate personality is a technical legal device, applied for a
multitude of very diverse aggregations, institutions, and transactions which have no
common political or social denominator whereas each of the many theories has
been conceived for a particular type of juristic personality.
• To comprehend and apply effectively the teaching of corporate personality, no other
guide is alluring than tough good judgment. In summation, there has been no theory
which envelops every one of the parts of the issue of juristic personality.
• In India, keeping the custom-based law standards, these theories have not acquired
monstrous traction in functional corporate administration, rather they have a solid
theoretical position.