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I saw this question over on Quora and thought I'd offer an answer. It is one, of course, that long time readers know I've touched on often.
In the colloquial sense of the word “ownership,” shareholders own the corporation. In a technical legal sense, however, “[s]hareholders own neither the property nor the earnings of the corporation. Shareholders own only stock, from which their income is derived upon the liquidation of assets or the declaration of dividends by directors.” Nelson v. Anderson , 72 Cal. App. 4th 111, 126 (1999) (internal citations omitted).
The technical legal sense is conceptually more accurate. Ownership implies a thing capable of being owned. To be sure, we often talk about the corporation as though it were such a thing, but when we do so we engage in reification. While it may be necessary to reify the corporation for semantic convenience, it can mislead. Conceptually, the corporation is not a thing, but rather simply a set of contracts between various stakeholders pursuant to which services are provided and rights with respect to a set of
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