shell corporation

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Shell corporation

An incorporated company with no significant assets or operations, often formed to obtain financing before beginning actual business, or as a front tax evasion.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

shell corporation

A corporation that has no active business operations and few or no assets.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Through face-to-face means, 436 copies of questionnaire were distributed to employees of Shell Corporation in Lagos.
The current laws (73) in effect are evidently insufficient to deter criminals from abusing the privileges of shell corporations. (74) After setting up a shell corporation under one of the many secretive options available, (75) the owners of these companies will set up a bank account for these entities.
Typically, the public shell corporation in a reverse merger is held by a third party to the company that wants to take the back door into public filing and trading.
attorney's office said that MacKay, who appeared in federal court on March 3, created a shell corporation and used it to divert and launder money at Willis for funding college savings plans for his children; a $1.9 million home in Williston, Vt.; and a condominium in Orlando, Fla.
There, a local school teacher named Margie Richard and other neighbors founded Concerned Citizens of Norco in 1990 and began demanding that Shell Corporation, the owner of the nearby petrochemical facilities, take responsibility for its pollution by relocating affected residents to a cleaner area.
Argentine President Nestor Kirchner called for a national boycott against gasoline retailers who raised their prices in March, focusing specifically on US-owned Esso and Dutch-English Shell Corporation. After almost a month of losing well over half their business, the companies announced in April that they would repeal the increases.
The groups were hardly grassroots organizations of inflamed citizens; the original chapter, in Weslaco, Texas, is just a shell corporation housed in the local chamber of commerce.
For example, the form for a Pinochet shell corporation stated that the owner's name is "Kept in Vault." The profile stated, "Client is a private investment company domiciled in the Bahamas used as a vehicle to manage the investment needs of the beneficial owner, now a retired professional, who achieved much success in his career and accumulated wealth during his lifetime for retirement in an orderly way." The source of the wealth is identified as: "High paying position in investment income.
At the subcommittee's request, GAO bought surplus items though a shell corporation, acquiring operating lab equipment and other items at less than one-tenth of the original cost to the Pentagon, the report said.
A classic example of this latter category would be Shell Corporation and its close links with certain green groups.