The question asks to identify the legal theory that defines a corporation solely as a legal device or formula, suggesting that only humans have interests and rights.
Bracket Theory, also known as the Concession Theory, explains corporate personality in a specific way:
The description in the question directly matches the tenets of Bracket Theory:
Therefore, Bracket Theory is the correct explanation for the concept described.
| LIST-I Profounder | LIST-II Idea |
|---|---|
| A. Mimansa | I. Law and Morals are same |
| B. Smriti | II. "Idea of Values" is the foundation |
| C. Post Reformation Europe | III. Law derives authority from State and not morals |
| D. Korknov | IV. There is distinction between obligatory and recommendatory rules |