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

[KevinTheOmnivore]

Thank you for acknowledging this thread, Punkgrrlie.

EDIT: And you too, chimpy.

Originally Posted by 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.

Well, I'd say barely. Those same board reps. are often CEOs of other corporations, vice versa.

I don't necessarily see a problem with someone holding a microscoping share in a corporation paying an equally microscoping price for the poor judgement of their investment. Wouldn't this perhaps make all of those minor shareholders take more of an interest in the practices of their investment???

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.

Right, but it's this same attitude that has likewise led to corporate neglegence, environmental disregard, and faulty book keeping. Isn't capitalism about risk rather than security? Isn't a system set up to protect the investment something other than free market capitalism?

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.

Don't take this personally, but........

Do you think WorldCom and ENRON are somehow the sole exceptions in corporate malfeasance? I would disagree.