Korporasjon

Korporasjon refers to a corporate entity, generally a company that has legal recognition as a separate entity from its owners. The term originated from the Latin word "corporatio," meaning "a body," and entered Norwegian with the same concept as in English: an organization formed to carry out business or other activities, typically with limited liability for its shareholders.

A korporasjon can take several legal forms, such as aksjeselskap (AS, a limited liability company), allmennaksjeselskap (ASA, a public limited company), eller samvirkeforetak (SYKE, a cooperative). The choice of structure determines how ownership is divided, how profits are distributed, and the regulatory obligations the entity must meet. For instance, an ASA is required to have a higher minimum share capital and must abide by stricter disclosure requirements than an AS.

Governance in a korporasjon is usually carried out by a board of directors and a management body, with shareholders exercising control through general meetings. Decision-making powers, voting rights, and board composition are defined in the company’s bylaws and in the Norwegian Companies Act. The legal status of the korporasjon provides that contracts and legal actions are made in its name; this separation shields individual owners from personal liability beyond their investment.

Corporations play a central role in Norway’s economy, accounting for a majority of commercial activity, job creation, and tax revenue. The regulatory framework seeks to balance entrepreneurial freedom with protection of creditors, employees, and the public interest. Corporate social responsibility, sustainability reporting, and corporate governance codes have become increasingly important, reflecting a global trend toward more transparent and accountable business practices.

Overall, a korporasjon is a key building block of modern economic systems, combining legal recognition, financial flexibility, and operational structure to facilitate large-scale production, trade, and service delivery.