Shell company definition


Synonyms: Sleeping Society, shell company
Short form:
English: dormant company, shell company, Specified Purpose Acquisition Companies – SPACs.

Definition 1:

A society that exists in name only and has ceased to act.

Shell company are most interesting when they are listed on a stock exchange, because they offer an inexpensive way for another company to acquire an admission by ‘put on’ the coat. Rumors surrounded continually approved coats, and their share prices can be quite volatile as investors come at the prospect of a transformation in excitement.

Definition 2:

Set a public company that has never started, or their trading activities has (such as a subsidiary, transferring its business to its parent company or Mittochtergesellschaft), but has not been resolved. Annual reports will be yet, but the books show that the company has operated during the year, no trade. A society in this way to keep the “live index”, so that it can be easily reactivated if they want to start again in the future to act. She is also known as a sleeping society [dormant company].

Definition 3:

A company with few or no assets and be available at a low price to buy. The buyer uses the company for his own business, which may differ significantly from that which was originally operated.

Definition 4:

A shell company is defined in Barron’s Finance & Investment Handbook as “a society that is founded, but has no significant assets or operations. Such corporations may be formed in order to obtain even before the commencement of business operations funding …. The term is also used by public companies that are set up by fraudulent operators as facades to hide detailed plans for tax fraud.“ They are also known as Specified Purpose Acquisition Companies (SPACs).