Eliminate dividend tax, AND limited liability....?

[punkgrrrlie10]

The only problem with eliminating limited liability in my eyes is that shareholders aren't responsible for business decisions that are proposed for the most part. Most number in the thousands for the bigger corporations and they vote their proxies to a proxy agent and the board of directors decides what insurance to take out and what business policies to implement. It's a democratic process.

Eliminating limited liability basically does away with the entire purpose of incorporation. By making shareholders liable you basically destroy alot of incentives for investment and the risk-taking that makes businesses flourish. You don't want to scare away innovation.

As far as corporate malfeasance, there are ways to "pierce the corporate veil" in order to hold individuals liable who may be responsible for fraud, etc. that are in place. That's one of the jobs of the SEC.