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Article: VIRTUAL CORPORATIONS-NO TIME FOR TRUST?

Article from:
Journal of Legal, Ethical and Regulatory Issues
Article date:
July 1, 2007
Author:
Copyright

ABSTRACT

Virtual Corporations (VC's) are temporary flexible networks, dependent on mutual trust, and linked by information technology for the purpose of exploiting fast changing market opportunities. However, the very characteristics which make them so effective at exploiting fast-changing opportunities can create legal difficulties relative to the creation of a legal entity whose rights and duties can be established in a court of law. Specifically, it seems likely that such entities may increasingly be created via "virtual documents" using information technology in addition to, or instead of, conventional paper documents. This may bring into question the validity of the instrument which ...

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