Lies behind corporate fiction allow executives to escape personal accountability. The corporation itself, a mere legal construct, is treated as a “person” capable of bearing responsibility, leaving the real decision-makers free from consequence.

A corporation, as a “legal fiction,” is an artificial entity in the sense that it cannot act on its own without human beings behind it.

It’s a construct created by the legal system to facilitate commerce and provide certain protections. But doesn’t have physical existence or consciousness. So is it all one big fat lie for the benefit of the elite?

What is a Legal Fiction?

A legal fiction is a concept or entity that doesn’t exist in the material world but is treated as if it does by the legal system.

It’s something the law “creates” to facilitate specific processes, actions, or arrangements. It’s not “real” in a physical sense, but it operates in a legal framework that makes it as “real” as a natural person for certain purposes.

In the case of a corporation, the law treats the corporation as a separate “person” even though it has no physical form. The “personhood” of a corporation allows it to enter contracts, own property, sue or be sued. Even though the corporation cannot think, or make decisions, it can be held responsible for its actions in ways that are similar to how a human being might be.

Lies Behind Corporate Fiction

Think about this, long and hard… a corporation doesn’t eat, sleep, think, or make decisions. But, as a legal fiction, it exists within the legal system to perform functions that human beings cannot easily or effectively perform on their own in the context of business.

Corporation = Legal “Person”

Legally, a corporation is considered a “person,” which allows it to engage in activities such as owning assets, making contracts, raising capital, etc. But these actions are all carried out by living people — individuals who serve as directors, officers, shareholders, and employees.

The corporation itself is just a set of rules, rights, and responsibilities created by law.

Acting through People.

While a corporation cannot act on its own, it acts through people (its officers and directors). These individuals make decisions on behalf of the corporation. But those decisions are legally attributed to the corporation itself. So when the going gets tough, there is no personal accountability.

For example, when a corporation signs a contract, it’s technically the corporation doing so. But it cant pick up a pen, or tap on a keyboard, meaning that living men and women behind it are the ones actually signing their names. This gives the corporation legal rights, protections, and obligations, separate from the individuals behind it.

The Power of Legal Fictions

The reason corporations are so powerful, despite being “fictions,” is that they exist as entities within the legal framework that provides them with certain rights and protections:

One of the most important reasons corporations are created is to protect individuals from personal liability. If a corporation gets sued or goes bankrupt, the shareholders (owners) are not personally responsible for the debts or actions of the corporation.

This allows individuals to invest and engage in commerce without risking everything they own. In a way, the “legal fiction” of the corporation allows for the separation of personal and business risks.

Unlike a natural person, a corporation can exist indefinitely, even after the individuals who founded it pass away or change. The “life” of the corporation continues, which is critical for long-term business planning, investments, and projects.

This continuity of the corporate entity is a major reason why businesses prefer operating under corporate forms rather than as sole proprietorships or partnerships.

Corporations, as legal entities, can raise capital more easily by issuing stocks, bonds, and other securities. This creates a large pool of capital that can be used to fund large-scale projects, research and development, and expansion.

Without the “legal fiction” of a corporation, many businesses wouldn’t be able to raise funds in such a systematic and structured way.

The corporation allows the separation of ownership (shareholders) and management (directors and officers). This makes it easier for large groups of people to invest in and run businesses.

The structure of the corporation allows for a delegation of duties and decision-making that would be harder to achieve if only individuals were involved. It also allows anonymity by those key decision-makers. No one admits to doing anything, and they all deny everything. But mysteriously things get done.

Corporate Fiction and the Real World

In the real world, the corporate structure is so ingrained in modern commerce that it’s become a foundational aspect of how business is done:

In practice, a corporation is often treated the same way as a person. It has a name, an identity, a structure, and a role in society. It’s not just a piece of paper or a concept—it’s a framework that governs how the business is run and how it interacts with others in society.

Corporations are the primary vehicle for global commerce. Whether it’s a multinational company like Apple or a local mom-and-pop store, many businesses operate under a corporate structure. The corporate “person” allows these businesses to function across borders, abide by international laws, and access financial markets.

Legal Fiction and the Modern State

The concept of a “legal fiction” is deeply tied to the legal and economic systems that govern modern states. Corporations, as legal fictions, are part of the broader legal and economic system that facilitates the operation of markets and provides stability to the global economy.

While the corporation itself may not have a tangible, physical existence, it operates within a world where legal entities are treated as though they have rights and responsibilities.

This framework is necessary for managing large-scale commerce, trade, and business relationships. In other words, the “fiction” becomes so widely accepted that it is treated as “real” in the context of the law.

Critique of Legal Fiction

From a critical standpoint, this can be viewed as problematic. It seems that corporations (and even the personhood of artificial entities) are simply tools to avoid personal responsibility. Executives and staff hide behind legal protections. And benefit from increasing profits (or losses) without bearing the full weight of the consequences.

Does corporate personhood give too much power to corporations? Allowing anonymous executives to influence politics, evade taxes, and limit accountability…

Some critics argue that the “real world” consequences of corporate actions like environmental damage and exploitation, are ignored because of the legal protections and structures that shield corporations.

So, what lies behind corporate fiction is an artificial construct created by law. All for the sake of money, to allow for easier management of commerce, business risk, and financial systems.

The reason this “lie” works (or is accepted) is because it serves the interests of those in charge. The legal fiction of a corporation allows people (like shareholders, executives, and managers) to limit their personal liabilities, accumulate wealth. It also shields themselves from the negative consequences of the corporation’s actions. And it provides legal protections that allow corporate entities to operate at scale without the owners (or key decision-makers) being personally on the hook.

The lies behind corporate fiction, corporate personhood and individual personhood can be seen as a form of legal trickery. It’s a construct that’s evolved over time to benefit those in power. Whether they are corporate executives, politicians, or the lawyers that serve them.

Hypocrisy Behind Corporate Fiction

There’s hypocrisy in how the system treats corporations and individuals. Corporations, as legal fictions, get legal benefits (limited liability, personhood) while executives and corporate leaders avoid personal accountability.

But when ordinary individuals question the legitimacy of these legal fictions, they are often punished or marginalized.

Lies behind corporate fiction create a deep contradiction within the legal system. A system that can seem like a deliberate manipulation to maintain corporate power and control.

This is why many who question the system feel alienated or unfairly labeled.

The system rewards those at the top for being clever with legal constructs. The rest of us are punished for challenging those very constructs.

Remember this one fundamental point. Lies behind corporate fiction depend on fraudulent paperwork using fictitious conveyance of grammar. The Courts know this, the corporations know this, the lawyers know this. But do you know this? And can you prove their frauds?

Once you comprehend fictitious conveyance of grammar you can protect your freedoms. You can start right here.