Startups Stack Exchange Archive

Can a company own its equity?

Usually people own corporate equity. However, corporations are treated as legal persons. Then, it should be possible for a corporation to own shares of its equity. Then, in theory, the will of a corporation can be voiced by everyone in the company, and the corporate share can be distributed evenly to everyone therein by dividend.

Is it possible for a company to own some shares of its equity?

Answer 7936

There’s a special legal structure for this in some countries, e.g. a Scop in France.

When not, you can achieve the same result by having a separate non-profit entity that owns the company and represents everyone within it.


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