Learn something new every day
More Info... by email
As one of the more common types of corporation, the aggregate corporation is a body of individuals who have united under a common business name with the purpose of conducting a specific type of business enterprise. One of the distinguishing marks of the aggregate corporation has to do with the establishment of a clear line of succession with the ranks of the officers of the company. Along with this line of succession is a great deal of control vested in the person who currently occupies the first position in the line of succession. Here is some information about aggregate corporations, and how this process works.
One thing to understand is that an aggregate corporation can be formed as a public corporation or a private one. All that is required is that there be more than one investor associated with the corporation. It should be noted that an organization that was composed of a group of family members as investors is generally not held to be an aggregate corporation. For legal and practical purposes, four investors who were part of the same immediate family would be counted as a sole investor, and the company would be considered a sole organization rather than an aggregate one.
The corporate structure within an aggregate organization will often appear to be similar to just about any other type of business, with the usual designation of officers. What will be slightly different is the amount of control that is vested in the individual who is considered to be first in the line of authority. Decision making processes will often center in this individual, and will remain so until the individual is no longer associated with the corporation. When this takes place, the next person in the line of succession moves into the position and assumes control of the organization.
The practical day to day operation of an aggregate corporation will often appear to be much like that of any type of business. Those in the line of succession are often involved in the operations of the corporation, carry titles within the company, and have specific responsibilities that they carry out under the authority of the senior individual. What is somewhat different is that there is very little in the way of red tape to deal with when succession takes place. The process is simple and more or less instantaneous, with no need for votes or a show of confidence on the part of the remaining investors. This means that even in a situation where the senior investor is removed from the company on short notice, the corporation will continue as before, with little to no affect on the operations.
One of our editors will review your suggestion and make changes if warranted. Note that depending on the number of suggestions we receive, this can take anywhere from a few hours to a few days. Thank you for helping to improve wiseGEEK!