Legal Question in Business Law in Pennsylvania

purchasing a c corporations stock

If I purchase all the stock of a privately owned c corporation and take physical delivery from the owner am I now the owner of the corporation?

Asked on 12/18/06, 2:44 pm

1 Answer from Attorneys

Douglas Humes Law Office of Douglas P. Humes

Re: purchasing a c corporations stock

No, if you buy all the issued and outstanding shares of a corporation, then you don't "own" the corporation - what you really own is what you bought - all the issued and outstanding shares of stock in the corporation. The corporation owns whatever assets are titled in its name, and owes whatever debts have been incurred in its name. You personally don't own those assets and owe those liabilities; the corporation does. What you own is the stock. You need to recognzie that distinction. You have to treat the corporation, its assets, its bank accounts, its affairs, as a separate person - and not something that you "own" and can do with what you like. For instance, you cannot simply write yourself a check from the corporation. You can take money out of a corporation as a loan, as salary, as a dividend, but not simply because you need to pay your bills. You should educate yourself on what you can and can't do - and not fall in to the trap of thinking that becasue you "own" the stock, you "own" the corporation.

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Answered on 12/18/06, 3:05 pm

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