shell company


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Related to shell company: shell corporation, Shell Oil Company

Shell Corporation

A company that exists as a vehicle for transactions without any independent activities or assets. Shell corporations are formed sometimes to obtain financing before they begin operations, or after a bankruptcy and business has ceased. They are also used in tax avoidance and tax evasion schemes: for example, companies may set up shell subsidiaries in tax havens and hide profits in them. See also: Reverse acquisition.

shell company

a company whose shares are currently listed on the STOCK MARKET but which is not actively trading. The share prices of such companies are generally very low and they may offer an attractive means for a business without a stock-market listing to acquire one by TAKEOVER.

shell company

a company that is not actively trading but that is still listed on the STOCK EXCHANGE. Such a company can be purchased in a REVERSE TAKEOVER by a company wishing to obtain a stock-exchange listing.
References in periodicals archive ?
We have had some talks with Shell company officials for their return to Iran's oil products market," Managing Director of Pars Oil Company Hassan Vafayee told reporters on the sidelines of the 20th International Oil Exhibition in Tehran.
One of the most obvious illicit uses for a shell company is when a brand new shell company is set up and sold to foreign interests without actually operating as anything first.
Chrysler Group LLC (Chrysler), a United States-based automaker, has reached a deal with Shell company holding to which the automaker had sold its old assets.
A shell company listed on the stock exchange provides a cheap way for another business to acquire a listing by "reversing" into the shell.
When the business went into liquidation, most of the assets would be transferred to the shell company and Sykes would then claim extortionate fees.
The chief worry attending a reverse merger, however, is that the shell company could be contaminated--that unseen troubles lurk below the surface that could prove destructive later on.
This shell company was acquired by AXIS Specialty U.
It was effectively a shell company and it was a sham.
Ken Murray boss of Murray Financial has been axed by the Edinburgh-based cash shell company with a pounds 700,000 pay off.
What often follows, though, are shoe-string maintenance and capital improvements budgets as plants are run into the ground and revenues skimmed off the top by the shell company shareholders, who grant themselves impressive salaries, bonuses and perks.
A credit check on SJR Enterprises would have revealed this shell company had no history.
In selling the shell company back to Enron in March 2001, the couple netted a $10.