Why is Savigny's theory of fiction inadequate for the construction of today's business corporations?
2019
Abstract
The aim of this paper is the answer to the question Why Savigny's theory of fiction is not suit-able for explaining the legal nature of business corporations, i.e. juristic persons of private law? The main reason rests in the fact that Savigny did not differentiate between particular types of juristic persons and did not distinguish between juristic persons of public and private law at all. Actually it was impossible, because Savigny did not consider a joint stock company as a legal entity, but merely a contract for an association - a society.
The theory of fiction, as it was created by Savigny did not refer to juristic persons of private law but to juristic persons of public law.