Thursday, April 08, 2010
Corporations are Creatures of the State so the State Should Create Them Diffrently
One way for ordinary people to deal with corporate power is to get state legislatures to enact more stringent rules for operating as a corporation like what existed before general incorporation laws became common. Back in the day, states granted charters more sparingly, and strings were attached. Moreover, states could revoke charters whenever it seemed to be in the public interest to do so. Charters were for limited time periods and required renewal. Charters were for limited purposes, and corporations had to get permission to change their line of business. The liability scheme could also be modified to keep executives honest. Corporations could be required to act in the pubic interest, and public directors could be mandated.
Posted by Vache Folle at 10:00 AM