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What you're describing is more applicable to an ordinary partnership, where the partners are personally liable for any debts or legal judgments against the part
by vannevar 4y ago
What you're describing is more applicable to an ordinary partnership, where the partners are personally liable for any debts or legal judgments against the partnership. Corporations and LLPs allow shareholders and partners to escape those liabilities, and it's reasonable to expect some duty to act in the public interest in return.
- marcusverus 4y ago> Corporations and LLPs allow shareholders and partners to escape those liabilities, and it's reasonable to expect some duty to act in the public interest in return. The entire concept of limited liability was created with the public interest in mind. Limiting personal liability encourages business creation, which encourages growth, which is in the interest of the public. > It's reasonable to expect some duty to act in the public interest in return. What is it that you're wanting to make these companies do, specifically?
- vannevar 4y agoThe question was whether a corporation is legally obligated to maximize profit. I was pointing out that, as you also note, the actual purpose of the limited liability of a corporation is to promote the public interest. Economic growth is one aspect of that interest, certainly, but it's not the only consideration. So corporations that give up short term profits to improve the environment or the well-being of their employees or the community are not shirking their legal obligation, they are living up to it.