Business Environment, 1st Edition by Pearson

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Part IV: Business and Society

running corporate business. In this sense, the assumption that the

corporation is owned by the shareholders is in fact meaningless.

For Kay and Silberston, ownership rights are not important to

business.

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Many public institutions such as museums, universities,

and libraries perform well without clear owners.

Indeed, the Indian Company Law does not explicitly grant

shareholders ownership rights because the corporation is regarded

as an independent legal person separate from its members, and

shareholders are merely the “residual claimants” of the corporation.

The company has its own assets, rights and duties, and has its own

will and capacity to act and is responsible for its own actions.

Therefore, Kay ...