Combined companies are formed by individuals under a common trading name for a specific business purpose. They have a clear line of succession with control exercised by the first person in line. Aggregate companies can be public or private and have more than one investor. The senior individual has control over decision-making processes, and the next person in line takes over when they leave. The day-to-day operations are similar to any other business, and probate is simple and instantaneous.
As one of the most common types of companies, the combined company is a body of individuals who have come together under a common trading name for the purpose of conducting a specific type of business enterprise. One of the hallmarks of the combined company has to do with establishing a clear line of succession with the officer ranks of the company. Along with this line of succession is a great deal of control exercised in the person who currently occupies the first position in the line of succession. Here is some information about the aggregated companies and how this process works.
One thing to understand is that an aggregate company can be formed as a public or private company. All that is required is that there is more than one investor associated with the company. It should be noted that an organization that was made up of a group of family members as investors is generally not considered to be an aggregate company. For legal and practical purposes, four investors who were part of the same immediate family would be considered a single investor and the company would be considered a single organization rather than an aggregate.
The corporate structure within an aggregated organization will often look similar to any other type of business, with the usual designation of officers. What will be slightly different is the amount of control vested in the individual who is considered to be first in the line of authority. Decision-making processes will often be centered on this individual and will remain so until the individual is no longer associated with the company. When this happens, the next person in the line of succession moves into the position and takes control of the organization.
The day-to-day practical operations of an aggregate company will often appear very similar to those of any type of business. Those in the line of succession are often involved in the company’s operations, carry titles within the company, and have specific responsibilities which they carry out under the authority of the senior individual. What is somewhat different is that there is very little to be done in the way of paperwork when probate occurs. The process is simple and more or less instantaneous, with no need for votes or a show of confidence from the remaining investors. This means that even in a situation where the senior investor is removed from the company at short notice, the company will continue as before, with little or no effect on operations.
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