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Really, it's time we started to reevaluate the whole "limited liability" thing. There's been numerous examples of people who start businesses, run too close to
by jlangenauer 8y ago
Really, it's time we started to reevaluate the whole "limited liability" thing. There's been numerous examples of people who start businesses, run too close to the wind, and then push the cost onto their suppliers, customers and employees (rather than the investors, who morally should wear the cost as they will be recieving the gains).
- TheOtherHobbes 8y agoOld problem. Using limited liability to scam customers, employees, and suppliers is almost as old as limited liability itself. Some individuals do it professionally. It's very hard - and expensive - to prove bad faith and fraudulent intent. It's even more expensive for victims to chase money owed even if fraud is proven. There should definitely be more attention paid to directors/CEOs with a long trail of insolvencies and legal challenges. Instead of informal consumer reviews or nasty feedback on the BBB, it wouldn't be bad for every country to issue businesses and individuals with their own business equivalent of a credit (credibility) rating - one that's lenient on reasonable failure but comes down hard on anything that looks like a pattern of premeditated scamming and corporate legal trolling.