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This. Bankruptcy for the entity so as to incentivize shareholders to select directors with proper mindsets, civil penalties for good heart/empty headed directo
by howard941 8y ago
This. Bankruptcy for the entity so as to incentivize shareholders to select directors with proper mindsets, civil penalties for good heart/empty headed directors, and criminal penalties for the c-suite denizens to penalize intentional misbehavior.
- Scoundreller 8y agodirectors have insurance for their civil penalties, so that cost is ultimately borne by someone else: the shareholders/creditors/employees.
- howard941 8y agoYes, you're right. The penalties and therefore the premiums would need to be massive to encourage the provider to properly vet and continuously monitor its insureds because we're unlikely to see a legislative solution.