3 ms·
A death penalty for the company shouldn't involve all those people losing their jobs, it should involve the wiping out of the existing shareholders and the sale
by count 4y ago
A death penalty for the company shouldn't involve all those people losing their jobs, it should involve the wiping out of the existing shareholders and the sale of assets at auction to another buyer, who, presumably, would continue to operate the business in a law abiding manner.
- forgotusername6 4y agoI like this idea. Does any country operate such a punishment for companies?
- palmtree3000 4y agoIsn't this chapter 11 bankruptcy?
- vineyardmike 4y agoMost American companies don’t just run out of money and close the doors with a shrug. Bankruptcy cases involve selling assets (including brands, employment, etc) to other investors. Original shareholders lose all their money, as the shares are deemed worthless (debt>>assets). Then new investors want to buy the remaining assets and have to pay the government (or other debt-holders) back for the debts (or the “fair market value” of the assets). There is no guarantee that this process with oust management, but the new owners may not believe in the ability of the old management after they bankrupted a company. Realistically, companies sometimes go into chapter 11 knowing it’s not the end just to restructure debt.