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At 06:42 PM 5/16/96 -0700, Wei Dai wrote:

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I'll just give one problem: the principal-agent problem. How do owners of the company make sure the managers operate the company in their best interest?

On Fri, 17 May 1996 jamesd@echeque.com wrote:

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Actually looting of companies happens a lot right now today, and very seldom leads to criminal charges. Twice I have lost a job because the company I worked for went under, apparently due to looting.

At 08:37 AM 5/18/96 -0400, Black Unicorn wrote:

Be careful to distingiush "owner" from "employee." All to common a mistake I fear. Until someone passes a constitutional right to not be fired, well, you're employeed at the will and by the good grace of the owners and your boss.

I was of course referring to looting by the management, not the shareholders, as should have been obvious from context.

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In others, such as net startups, I see no solution other than increased reliance on personal individual capital.

Still, vulnerable to last round problems.

Reread: Your above statement makes no sense in context. --------------------------------------------------------------------- | We have the right to defend ourselves | http://www.jim.com/jamesd/ and our property, because of the kind | of animals that we are. True law | James A. Donald derives from this right, not from the | arbitrary power of the state. | jamesd@echeque.com