FUND AS A CORPORATE LEGAL ENTITY: A HISTORICAL PERSPECTIVE ON THE DEVELOPMENT OF FOREIGN LEGISLATION

The modern business corporation or company represents one of the core instruments of capitalist economies. The aggregation of capital in corporate entities provided such a driving force for growth and development that, by the mid-19th century—when the first general incorporation statutes (i.e., statutes governing company formation) were enacted—no one had even anticipated its full potential. However, alongside critical examinations of capitalism, corporate law and corporate theories continue to evolve. The discussion presented in this article is based on a new paradigm in the understanding of companies. This paradigm envisions the fund (partnership capital) as a legal entity encompassing several rights and supported materially by the state, serving as a conceptual basis for the modern corporation. The focus of the article lies in the creation of companies as a fusion of elements that have evolved into the modern corporate form. The article also explores the reasons why the development of this modern form took until the end of the 19th century. Keywords: legal entity, fund, incorporation statutes, corporate entities, corporate capitalism, company, corporation