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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: wonk who wrote (11041)	2/7/2006 9:22:07 AM
From: carranza2	Read Replies (1) \| Respond to of 541778

Rhetorical Question: As a matter of public policy then, the People should not demand some compensation for the extremely valuable intangible asset inherent in the Government charter of LLCs and Corporations – that is the limitation of liability? Rhetorical answsers: How many times have you seen corporations take advantage of the limitation? How much has the limitation been worth, historically? To what extent have insurers filled the gap in the limitation? In smaller companies, to what extent do banks and other creditors demand personal indemnification as a condition of financing? How much is the limitation really worth?

To: wonk who wrote (11041)	2/7/2006 1:09:34 PM
From: TimF	Read Replies (1) \| Respond to of 541778

In the real world an investor may do better or worse with his investment than the company does with the capital provided. I agree that this is a fact but I don't consider it to be very relevant to this discussion. Rhetorical Question: As a matter of public policy then, the People should not demand some compensation for the extremely valuable intangible asset inherent in the Government charter of LLCs and Corporations – that is the limitation of liability? The government is also the authority that imposes the liability. The liability is fully owned by the corporation. I don't consider the fact that the investors can avoid liability to be a benefit provided by the government. In any case the government and society as a whole benefit greatly from corporations. They pay a lot of tax money, hire a lot of people, and produce a lot of goods and services. I would submit that the value of all of these things would be less if every investor was fully liable for any action the company takes. Tim