Corporate Personhood

What is Corporate Personhood ?

‘Corporate Personhood’ refers to the concept of allowing enterprises and companies to be recognized as an individual rather than a group of individuals. This kind of recognition bestows some basic rights on the enterprise which an individual enjoys under the court of law, like the ability to enter into contracts with other individuals or enterprises, among others.

Corporate personhood also helps these companies with limited liability for the individuals. For example, if a manager breaches a contract made by the company with any 3rd party, it is the company that would be getting sued instead of the said manager.

Due to the way it is structured, corporate personhood has come under a lot of criticism. While it protects individuals under the company’s status as an individual, it also helps harbour unethical practices by some employees who misuse their corporate position.

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