Chose

chose meaning

A chose is a thing. Chose is a phrase used in the tradition of common law to refer to rights in property, more especially an unified bundle of rights. It comes from the French word for "thing." A party's enforcement right in an item is referred to as a choice when discussing legal terminology.

chose in action

A "chose in action" is a right that a person does not now have enjoyment of, but that person has the ability to regain it (if it has been denied) by legal action. This may be assigned in writing, provided that the assignor signs the document, the conditions are absolute, and the debtor receives written notification of the assignment.

chose in possession

The term "chose in possession," as opposed to "chose in action," refers to the act of really taking physical possession of an item or a right in oneself. In legal terms, 'chose in possession' refers to a type of personal property that can be physically possessed by the owner. It is a term used in the context of ownership of assets that can be touched, felt, or held by the owner such as cash, jewelry, furniture, or cars. Chose in possession is a fundamental principle in property law, it means that the owner holds complete control over the asset and can sell, transfer, or dispose of it as they please. This type of property contrasts with 'chose in action' which means property or assets that are in the form of a legal claim and cannot be physically possessed such as a patent or shares in a company. Understanding the difference between these two types of property is essential for navigating various legal issues related to property rights.

Company Share

When entering a discussion about the “the share” (this proprietary right), it is essential that we differentiate, between the property belonging to the company and the property of the shareholders. The shareholders have an interest in the incorporated company but not an interest in the incorporated company’s property. The shareholder’s have what is generally termed a “chose in action” or “things in action”. This is a proprietary right, which is essentially a bundle of rights. These bundle of rights, things and enforceable qualities that are extant in “the share” are contained in the articles of association, shareholder agreements and memorandum of association, they are an intangible movable property.

Pitfalls of chose in action

Gower argues the term chose in action is an unhelpful and “notoriously vague term”. It is a term, which is relied upon to describe a gathering of interests, which have no unifying characteristic, except that they all confer a right to an intangible movable property. It may be more useful to look at the share not always as a chose in action. It is argued the chose in action can be deceptive if it is understood to mean anything more than shares are classified as intangible movables. A chose in action cannot be taken to mean that shares are analogous to debts. What is the purpose of this “chose in action”, in companies? Ultimately we have shares because the company needs something, which is transferable. Broadly speaking if something is quantifiable it is transferable and therefore it can be traded in a stock exchange, or it can be used to invite in venture capitalists, because it makes the interest easier to measure.

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