You should check out this article: "Taxpayers may pay legal bills for mortgage execs." It is hard to imagine a more convoluted, incompetent, amoral, and foolish system than our current corporate legal definition. The purpose of corporations was, originally, to allow money to be pooled to accomplish substantial tasks that were too large for normal business arrangements; sole proprietorships and partnerships. Due to a screw-up made by one of our many incompetent versions of the grossly misnamed Supreme Court in 1886, an ex-railroad executive turned sinister "court reporter" (J.C. Bancroft Davis) invented corporate rights based on the 14th Amendment. The lazy justices did not rectify this intentional perversion of their ruling and we've been stuck with a despicable and unaccountable intuition ever since.
As the US economy continues to self-destruct, we should take advantage of this moment in history to redefine the purpose and structure of corporations. Corporate executives should bear more responsibility for the actions and failures of the businesses they administer, not less. Since their business structure is supposed to, first, provide useful benifit to the society, that should be their first obligation. Second in line would be the profit of their investors. Last is the wealth of the executives.
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