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by josefx
1806 days ago
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> A company belongs to its shareholders. A company is generally its own legal entity, intentionally separated from its shareholders to protect them from any fallout should the company ever go bankrupt or get sued into oblivion. You can get into serious trouble if you founded a company and failed to correctly distinguish between your own and the companies property, because as far as the government is concerned you explicitly told it to make this distinction. |
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And there is very little privilege that incorporation grants corporations that is not entirely contractual. Limited liability for shareholders for tort is the only one I can think of, and that, in my opinion, should be repealed.
Limited liability for debt can be entirely contractual in its basis, and established by shareholders/companies operating outside of the corporate structure too, simply by stipulating that condition in any loan agreememt the business enter into with another party.