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Is there some sort of bizarre political campaign on HN to try and redefine why companies exist? Companies are legal constructs that were created to provide inv
by gamblor956 3y ago
Is there some sort of bizarre political campaign on HN to try and redefine why companies exist?
Companies are legal constructs that were created to provide investors in business activities limited liability with respect to their investment in a mutual business activity. And that's it.
For their first several hundred years, companies were expected to provide benefits to their employees and the localities in which they operated in exchange for that limited liability. (And see what happened to Lloyd's of London's shareholders to understand why that is a more than fair exchange.)
If companies want to be all about "benefit for the shareholders" and to hell with everyone else, then its about time we take away the limited liability.