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I'm in favor of a corporate death penalty. In cases where a company is found guilty of gross negligence leading to terrible disasters and loss of life, give a j
by jjeaff 4y ago
I'm in favor of a corporate death penalty. In cases where a company is found guilty of gross negligence leading to terrible disasters and loss of life, give a jury the option to give the death penalty. All equity holders AND debt holders are washed out and the assets are sold off to pay victims and severance pay for low level employees.
- ticviking 4y agoRevoking their charter and seizing their assets seems just for a lot of this stuff.
- anonymouskimmer 4y agoTheir charters are often from other states (such as Delaware). This would complicate the issue by entwining state's rights and federal rights.
- anonymouskimmer 4y agoFor the USA, an easy mechanism for a corporate death penalty (for large enough corporations) without running afoul of takings clause would be to bar the corporation from engaging in interstate commerce, and to bar the equity holders from selling to themselves or relatives.
- torstenvl 4y agoIf you're talking about judicial action, the Takings Clause isn't a problem. If you're talking about Congressional action, your proposed alternative runs into the prohibition on Bills of Attainder. In my view, the L&E approach of punitive damages calculated to be greater than the profit incentive of the negligent/reckless behavior is the best approach. Additionally, to the extent that an executive's actions were clearly not in the long-term interest of the corporation, they should be made personally liable.
- anonymouskimmer 4y agoTo avoid the bill of attainder issue the companies wouldn't be individually named. All corporations that fit the bill would be subject to the bill. And since Congress is forbidden from passing ex post facto laws, such a law would obviously not be a bill of attainder, as it could not guess who would be subject to it. IANAL. I believe that there are limits to the penalties a judicial action can impose. A corporate death penalty presumably wouldn't survive appeals without an underlying law. I guess the 8th amendment might still be a barrier to my alternative. > In my view, the L&E approach of punitive damages calculated to be greater than the profit incentive of the negligent/reckless behavior is the best approach. I agree. But I also want a corporate death penalty beyond this.
- refurb 4y agoAre you willing to lose your job because your CEO did something wrong?
- anonymouskimmer 4y agoNo. But that has never stopped a layoff. It would be better to do this the way the FDIC treats failed banks: sell off obligations of the company, including buildings, equipment, and employees, to competitors. For a straightforward business such as a train logistics company with direct competitors who do effectively the same business, this seems relatively simple.
- refurb 4y agoSelling to competitors sounds like a great way to create monopolies and perverse incentives. Your idea is full of holes.
- anonymouskimmer 4y agoYou do know that the FDIC requires spin offs as necessary to eliminate monopolies?
- refurb 4y agoOk, so going with your idea. We kill a company, then sell to competitors. FDIC says "that's anti-competitive". Now what?
- anonymouskimmer 4y agoPart of the merger plans include the spin-off plans. This is typical even in large mergers that aren't government negotiated.
- refurb 4y agoSo you're not killing the company? You're justing selling it (bad safety culture and all) to another company?