Who is artificial person

For example, a corporation , company etc. To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Home Glossary Define: Artificial Person. Definition: Artificial Person. Quick Summary of Artificial Person An entity that is recognised by the law as a legal person. Cite Term. What is the dictionary definition of Artificial Person? From: artificial person in A Dictionary of Accounting ». Subjects: Social sciences — Business and Management.

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Recently viewed 0 Save Search. Not to be confused with a shareholder, which owns part of a company through shares of stock. Stakeholders have interests other than stock performance only. Considered and treated as artificial persons, corporations are entitled to specific rights, such as:. However, corporations are not allowed to exercise certain liberties, such as the right to marry, parent a child, vote, or run for office.

Individuals, on the other hand, have the freedom to exercise such rights. Corporations are held liable for the actions of their companies, as well as the people they choose to employ; just as individuals and groups of people are responsible for their own actions.

If recognized as an artificial person under the law, government and courts hold corporations liable and responsible to operate in accordance with statutes and government regulations. These regulations stem from all levels of government; federal, state, local, and all applicable jurisdictions.

Corporations have unlimited life, meaning that the sale of stock or death of a stockholder or employee does not impact the continuous life of the corporation. As a separate legal entity, operating under its own name, a corporation can be sued. As previously mentioned, courts hold corporations liable and responsible to obey and operate under the law, just as individuals are to obey laws. If a corporation fails to comply or is sued and found guilty, the court can order them to pay fines or even order them to liquefy the entity.