Definition of shell company in English:

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shell company

Pronunciation: /ˈSHel ˌkəmp(ə)nē/

noun

An inactive company used as a vehicle for various financial maneuvers or kept dormant for future use in some other capacity.
Example sentences
  • The company is merging with two other rivals via a three-way acquisition by a long-dormant shell company, but it promises that the deal is the first of several in this fragmented industry.
  • He explained that this is only a shell company left over from the restructuring process.
  • Many corporations use shell companies to reduce the tax liabilities of deals, but it created a new shell company for almost every new issue.
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