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Shareholding is not required to generate wealth, and it does encourage the disconnect between business activity and responsibility for results. Politicians wil
by zentiggr 7y ago
Shareholding is not required to generate wealth, and it does encourage the disconnect between business activity and responsibility for results.
Politicians will generally follow what the money wants. Making those with a financial stake in the companies responsible is what will remove the gap.
- missedthecue 7y agoAre you actually trying to say that limited liability is bad
- zentiggr 7y agoI think I'm leaning toward limited liability enables amoral/unethical behavior. I really would be open to considering extending corporate liability not just to the officers but to shareholders as well. E.g., if a company is found liable for illegal toxic waste dumping, the company should be fined, the officers that approved / failed to curtail it should be liable, and shareholders should also be penalized... calculating proportions of the cleanup and penalties to assign based on corporate valuation, officers' salaries, and shareholders' stock values. No doubt the process could get messy but everyone in that chain deserves a share of the blame, for having polluted, and for incentivizing it. I can see a future where shareholders take an active auditing role in corporate operations to ensure they're not getting hung out to dry.