What is a corporation defined as under law?

A corporation is defined under the law as an artificial being created by operation of law. This definition reflects the unique legal status that a corporation holds, distinguishing it from other forms of business organizations. Corporations are recognized as separate entities from their owners, which means they can own property, enter into contracts, and be liable for debts in their own name. This legal distinction allows for limited liability for the shareholders, protecting their personal assets from company liabilities.

The notion of a corporation as an artificial being emphasizes that it exists independently of the individuals who comprise it. This foundational concept is crucial because it enables corporations to operate, enter legal agreements, and exert rights and responsibilities just like a natural person. Understanding this definition is key to grasping other aspects of corporate law, such as governance, structure, and the implications of corporate actions in legal contexts.