BobG said:
It would do worse than that. Our economy would come crashing to a halt if investors were held personally liable for things the corporation they invested in did. And that pertains to more than criminal acts. Who should pay the retirement and medical benefits of former GM employees if the company goes out of business?
That's why I was wondering what you were getting at several posts back.
Yeah, I was pointing out that the concept of corporate personhood, as recognized in reality, is very different from what some obviously believe. And, as you point out, stockholders aren't personally liable for the debts of a corporation that goes out of business. But
every creditor and employee knows that ahead of time, so that's not a big issue. Even without personhood a company's owners
could legally arrange for that, anyway, by simply including a clause in the respective loan and employment agreements in which creditors and employees agree to cancel the debt in case of company failure.
The other issue with limited liability is that the stockholders aren't responsible for any wrongful act judgments against an out of business corporation, so unless a stockholder is sued personally for a wrongful act, he only loses his investment, and a company could not contractually arrange for that without corporate personhood. But I think most people consider this fair enough, since limited liability doesn't prevent anyone from suing a stockholder
personally for a wrongful act, if the act was personally committed by the stockholder.
It could be legitimately argued that there are some bad sides to the idea of corporations.
There are disadvantages for sure.
But, yes, I can't see much advantage to expanding the definition of corporate "personhood" any more than its current status.
I agree, but I would note that in this case, neither side objected to corporate personhood, which was my point.
Some people take the concept of personhood way too far, so far that they completely forget that wrongful acts or crimes, while they can be attributed to corporations for legal purposes using the "personhood" doctrine, are all actually committed by real humans using a corporation as a tool.