Denial of corporate status

Japanese: 法人格否認 - ほうじんかくひにん

It refers to denying the independence of legal personality between a company and shareholders, or between companies, and treating the two as one and the same. A joint-stock company is a legal entity, and the legal relationship between the company and shareholders is formed separately and independently. Shareholders are not liable for company debts (shareholder limited liability). There are over one million joint-stock companies in Japan, and a significant number of these are private businesses that have become corporations for tax savings or to take advantage of shareholder limited liability. In such companies, which effectively have only one shareholder (one-person company), the property and business relationship between the company and the shareholder is often unclear.

Source: Heibonsha World Encyclopedia, 2nd Edition Information

Japanese:

会社と株主の間または会社間の法人格の独立性を否定し，両者を同一視することをいう。株式会社は法人であり，会社と株主の法律関係は別個独立に形成される。株主は会社債務に責任がない(株主有限責任)。日本には100万社を超える株式会社があり，その相当数は個人企業が節税目的または株主有限責任を利用するために〈法人成り〉したものである。株主が実質上1人のこのような会社では(一人会社)，会社と株主の財産･取引関係が不明確な場合が多い。

出典　株式会社平凡社世界大百科事典第２版について　情報

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