[Avodah] Corporate Entities

[Micha Berger]

On Tue, Feb 28, 2012 at 06:33:47PM +0000, kennethgmiller at juno.com wrote:
: Suppose Reuven needs to borrow $1000. Shimon and Levi are each able
: to lend him $500. How is their partnership created in halacha? ...

That's not a partnership. Say, Shimon and Levi own a field together,
and before they divy up the profits from the crops they sell, they
lend $1000 of it to Reuven...

: Phrased another way: If you are telling me that "Shemitas kesafim
: doesn't apply to partnerships", then I am suggesting that there might
: be no difference between a partnership and a corporation...

The difference is that a corporation isn't simply a combination of its
owners. Stock ownership is treated as shutefus, and this raises issues
of owning stock in a company that owns basar bechalav or chameitz on
Pesach. 

And if the corporation dissolves, debts devolve to the former owners.

: *IF* a parnership creates a new entity distinct from the partners
: themselves...

My whole point is that it does not.

And that Western-style alleged corporations are halachic partnerships.
Although the bit about the former "partners" inheriting the debt probably
wouldn't apply because of DDD.

-Micha

-- 
Micha Berger             "'When Adar enters, we increase our joy'
micha at aishdas.org         'Joy is nothing but Torah.'
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