[lucianbr]

> The corporation is the legal embodiment of our joint interests.

Would you stand by this statement when the corporation is caught doing some illegal evil thing, like denying employers their rights, or damaging the environment? Even if you would, most shareholders of large corporations don't. They suddenly discover being a shareholder is a very "at arms length" thing.

Might work nicely if corporations were "the embodiment" at all times, or at no times. But selectively, it is quite bad.

[notquitetrue]

If you intentionally undercapitalize a business to avoid foreseeable liabilities, the courts can pierce the corporate veil. Otherwise, limited liability is thought to provide the necessary incentives for widespread equity ownership and investment and desirable economic risk taking. In any case, limited liability is not a constitutional right and could be modified or abolished. Free speech and freedom to petition the government are guaranteed rights though. The government can’t just circumvent the first amendment by making waiver of those rights so economically necessary that every business has to do it to be competitive. The courts don’t buy that logic nor should they.