1) THEORY OF PRESUMPTION: This theory is based on the idea that only individuals can have rights and obligations. However, as it became apparent that the needs that arose would not yield the desired result if a right were exercised by more than one person, for example, in situations where many people are rights holders, it became necessary to establish legal entities. For this reason, today, “artificial” entities that are not real persons have been given personality characteristics. These are artificial entities created for practical convenience. According to the theory, since legal entities are not real persons, they can only exercise their capacity to act through their representatives. This is because non-real entities have no will.
2) REALITY THEORY: According to this theory, legal entities are real persons just like us and should be treated as such. The only difference is that they have no physical existence. Legal entities have the capacity to act just like humans and, like humans, have organs through which they carry out their activities. The actions of these organs also mean that they have the capacity to act. Contrary to the hypothetical theory, organs are not representatives. In other words, the legal entity is directly liable for the unlawful actions of the organ.
Today, theories have been influential in determining how legal entities acquire legal personality. The traces of the reality theory are particularly evident today. Today, legal entities have the capacity to act through their organs and to use them. When the organs of legal entities act contrary to the law, the legal entities are liable for this (Articles 49 and 50 of the Turkish Civil Code). This is because the law makes legal arrangements according to the needs of society. Therefore, in today’s law, legal entities are influenced by every theory.