2 ms·
What's the point in scattering the company into a bazillion pieces? Let's take the example of a company that would deserve the corporate death penalty the most,
by gruez 1y ago
What's the point in scattering the company into a bazillion pieces? Let's take the example of a company that would deserve the corporate death penalty the most, Purdue Pharma. What would the point in breaking it up? Is leaving it intact going to cause the next opioid epidemic or something?
- fmajid 1y agoAccountancy firm Arthur Andersen suffered a de facto corporate death penalty for rubber-stamping Enron's accounts.
- bombcar 1y agoThe whole point of a CDP is to push some liability onto the limited liability shareholders. Basically, make it so there are crimes that the shareholders will themselves police the company, because they don’t want to risk losing it all. Part of a CDP would be NOT paying back bondholders, etc. it’s spreading the pain around so nobody will lend or support a company doing activities that open the door to CDP.