Limited Liability

The legal status of the corporate entity is the limited liability. The people that own the assets of the corporation cannot be held personally responsible (accountable) for any wrong doing. It alienates the "person" from the corporate detriment that can, and does, operate to produce value that is "personally" held as private property.

The legitimacy for the limited accountability is solely dependant on the operation of a free and unconsolidated marketplace. That's why consolidation of industry and markets (power) is illegal by statute.

The theory of a limited corporate liability is not void of a moral intelligence. As long as a free and unconsolidated marketplace obtains, the entrepreneur that loses his business due to abusive practices survives the negative sanction both public and private to prove himself worthy of the public's consent. The business person is not criminalized or prohibited from practice, but the corporate is allowed to be reorganized into a productive entity that is both legal and proper. That effectively maximizes the probability for maximum supply by maximizing the incentive to provide it without being abusive. It is a legacy of 18th Century utilitarianism.

While the corporate limit to liability has evolved limitations, a salient example being the liability of Enron executives, the limits are to preserve the limited liability without its proper legitimacy--a free and unconsolidated marketplace. This is where the limited liability suffers a lack of moral intelligence.

The cure is to ensure a free and unconsolidated marketplace in priority (pluralism). This will not lead to economic collapse and massive unemployment as the advocates of large, consolidated entities argue. On the contrary, it will maximize those values.

Join the coalition to elect Barack Obama and maximize the profitability of your business and the peaceful, secure prosperity of your family, of your nation, of your world!

Very best wishes.