At 9:50 AM -0800 2/12/98, Lizard wrote:
I've been saying that for a long time. I'm not 100% certain I wish to eliminate entirely the corporation, but the idea of an 'artificial person' as an entity to take the blame for crimes committed by real people is highly dubious to me. If Monty Burns says, "Let's dump the toxic waste in the school ground, who cares if some kids die!", then it should be he who faces criminal charges -- not his corporation which gets fined.
I fully agree, and I think US law agrees, that an illegal act by an employee is not shielded by incorporation. But as many people on this list have noted, what the law says, and what is enforced are widely different. Probably the most valuable feature of corporations is the way they limit the financial liability of their stockholders and managers. This limit allows people to go into business without having to worry about business creditors coming to take their houses and cars. (And wives and first born :-) Since everyone knows what the deal is, there is no fraud. Everyone extending credit to a corporation knows that it is the corporation's credit rating which is relevant, not the credit ratings of the members of the board of directors. Limited liability, coupled with the willingness of venture capitalists to fund ventures lead by people whose previous ventures have failed, are the engine which allows Silicon Valley's creative destruction approach to making money succeed. ------------------------------------------------------------------------- Bill Frantz | Market research shows the | Periwinkle -- Consulting (408)356-8506 | average customer has one | 16345 Englewood Ave. frantz@netcom.com | teat and one testicle. | Los Gatos, CA 95032, USA