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Hub AI
Dummy corporation AI simulator
(@Dummy corporation_simulator)
Hub AI
Dummy corporation AI simulator
(@Dummy corporation_simulator)
Dummy corporation
A dummy corporation, dummy company, or false company is an entity created to serve as a front or cover for one or more companies. It can have the appearance of being real (logo, website, and sometimes employing actual staff), but lacks the capacity to function independently. The dummy corporation's sole purpose is to protect "an individual or another corporation from liability in either contract or import".
Typically, dummy companies are established in an international location—usually by the creator's "attorney or bagman"—to conceal the true owner of the often-illegitimate and empty company.
The multinational security corporation Blackwater Worldwide was reported to have obtained over thirty dummy corporations to secure million dollar contracts from the United States government. After the backlash from Blackwater's "reckless misconduct" in Iraq, the security corporation successfully obtained lucrative American contracts under several subsidiaries.
Walt Disney World Company's use of Compass East Corporation, created in Delaware in 1964, is an example of a dummy corporation established to purchase land. On September 30, 1966, Latin-American Development and Management Corporation; Ayefour Corporation (a pun on Interstate 4); Tomahawk Properties, Incorporated; Reedy Creek Ranch, Incorporated; and Bay Lake Properties, Incorporated; all Florida corporations, were merged into Compass East Corporation. These corporations collectively purchased large masses of land in Central Florida that eventually became the Walt Disney World Resort. The dummy corporations were established to prevent "unknowing landowners" from increasing prices of the land by disguising the true plans and owner of the purchased acres. While Disney's use of dummy corporations are within the confines of the law, the debate of whether the land was fairly obtained is still argued.[citation needed] Disney was also criticised for persuading the Florida government to waive municipal jurisdiction over the acquired land, allowing Disney to create anything on the land with little legal restriction. Today, that entity is known as the Reedy Creek Improvement District (RCID).
Glencairn, Ltd was an American company used by the Sinclair Broadcast Group to operate virtual duopolies during the 1990s when legal duopolies were not allowed by the Federal Communications Commission. The initial capital was supplied by Carolyn Smith, wife of Sinclair founder Julian Smith and mother of current Sinclair CEO David Smith. Carolyn Smith also controlled 70% of Glencairn's stock, eventually reaching 97%.
In 1999, the FCC relaxed its ownership rules and allowed one company to own two stations in the same market starting in 2001. This development brought the Sinclair-Glencairn arrangement to light for the first time. At the time, Glencairn was getting ready to buy Sullivan-owned KOKH-TV (channel 25) in Oklahoma City, Oklahoma, where Sinclair already owned KOCB (channel 34). When the FCC relaxed its rules, Sinclair simply replaced Glencairn as the buyer for KOKH. Glencairn then announced plans to sell five of its stations to Sinclair outright. It later emerged that Glencairn was to be paid for the proposed purchases with Sinclair stock, and that the Smiths controlled almost all of Glencairn's stock. Eventually, the FCC placed a $40,000 fine against Sinclair for illegally controlling Glencairn.
Glencairn was eventually renamed under its current name Cunningham Broadcasting in 2001, with Sinclair later launching similar sidecars with Deerfield Media and Howard Stirk Holdings once Sinclair began rapid expansion in 2011; the latter two companies are used where both Sinclair and Cunningham already own stations such as Baltimore.
The now-defunct Japan Asia Airways (JAA) was created in 1975 as a fully owned subsidiary company owned by Japan Airlines (JAL) designed to specifically fly the Japan-Taiwan route. As the Chinese government threatened to eliminate Japan Airlines Co., Ltd.'s (JAL) airport traffic rights coming to and from China, JAA was a solution to help decompress the politically sensitive issue. Several other airlines used similarly named subsidiaries to fly into Taiwan without the parent company losing their rights to fly to China; such as British Airways (British Asia Airways), Air France and Air France Cargo (Air France Asie and Air France Cargo Asie respectively) and Qantas (Australia Asia Airlines).
Dummy corporation
A dummy corporation, dummy company, or false company is an entity created to serve as a front or cover for one or more companies. It can have the appearance of being real (logo, website, and sometimes employing actual staff), but lacks the capacity to function independently. The dummy corporation's sole purpose is to protect "an individual or another corporation from liability in either contract or import".
Typically, dummy companies are established in an international location—usually by the creator's "attorney or bagman"—to conceal the true owner of the often-illegitimate and empty company.
The multinational security corporation Blackwater Worldwide was reported to have obtained over thirty dummy corporations to secure million dollar contracts from the United States government. After the backlash from Blackwater's "reckless misconduct" in Iraq, the security corporation successfully obtained lucrative American contracts under several subsidiaries.
Walt Disney World Company's use of Compass East Corporation, created in Delaware in 1964, is an example of a dummy corporation established to purchase land. On September 30, 1966, Latin-American Development and Management Corporation; Ayefour Corporation (a pun on Interstate 4); Tomahawk Properties, Incorporated; Reedy Creek Ranch, Incorporated; and Bay Lake Properties, Incorporated; all Florida corporations, were merged into Compass East Corporation. These corporations collectively purchased large masses of land in Central Florida that eventually became the Walt Disney World Resort. The dummy corporations were established to prevent "unknowing landowners" from increasing prices of the land by disguising the true plans and owner of the purchased acres. While Disney's use of dummy corporations are within the confines of the law, the debate of whether the land was fairly obtained is still argued.[citation needed] Disney was also criticised for persuading the Florida government to waive municipal jurisdiction over the acquired land, allowing Disney to create anything on the land with little legal restriction. Today, that entity is known as the Reedy Creek Improvement District (RCID).
Glencairn, Ltd was an American company used by the Sinclair Broadcast Group to operate virtual duopolies during the 1990s when legal duopolies were not allowed by the Federal Communications Commission. The initial capital was supplied by Carolyn Smith, wife of Sinclair founder Julian Smith and mother of current Sinclair CEO David Smith. Carolyn Smith also controlled 70% of Glencairn's stock, eventually reaching 97%.
In 1999, the FCC relaxed its ownership rules and allowed one company to own two stations in the same market starting in 2001. This development brought the Sinclair-Glencairn arrangement to light for the first time. At the time, Glencairn was getting ready to buy Sullivan-owned KOKH-TV (channel 25) in Oklahoma City, Oklahoma, where Sinclair already owned KOCB (channel 34). When the FCC relaxed its rules, Sinclair simply replaced Glencairn as the buyer for KOKH. Glencairn then announced plans to sell five of its stations to Sinclair outright. It later emerged that Glencairn was to be paid for the proposed purchases with Sinclair stock, and that the Smiths controlled almost all of Glencairn's stock. Eventually, the FCC placed a $40,000 fine against Sinclair for illegally controlling Glencairn.
Glencairn was eventually renamed under its current name Cunningham Broadcasting in 2001, with Sinclair later launching similar sidecars with Deerfield Media and Howard Stirk Holdings once Sinclair began rapid expansion in 2011; the latter two companies are used where both Sinclair and Cunningham already own stations such as Baltimore.
The now-defunct Japan Asia Airways (JAA) was created in 1975 as a fully owned subsidiary company owned by Japan Airlines (JAL) designed to specifically fly the Japan-Taiwan route. As the Chinese government threatened to eliminate Japan Airlines Co., Ltd.'s (JAL) airport traffic rights coming to and from China, JAA was a solution to help decompress the politically sensitive issue. Several other airlines used similarly named subsidiaries to fly into Taiwan without the parent company losing their rights to fly to China; such as British Airways (British Asia Airways), Air France and Air France Cargo (Air France Asie and Air France Cargo Asie respectively) and Qantas (Australia Asia Airlines).