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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (188009)	6/2/2006 9:09:30 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 281500

This is not true. One of the main reasons for establishing a corporation is exactly so as to avoid personal liability. I concur. Which is why I said you can't separate the corporation from the actions of the employees. The employees, including family or personal corporations, are created so that people can engage in business (which may succeed or fail) and not have their personal assets put at risk. If we follow your logic, I could start a corporation, attempt to start a new line of gadgets. Of course I need money, so I go to the credit/capital markets. Now if my company's product doesn't sell, or some unforseen economic condition prevents me from reaching profitability (depression, war.. etc), then the corporation may have to fold, leaving those debts unpaid. But under your scenario, the officers of the company could be sued and held responsible for all of the debts of the corporation. Furthermore, shareholders, as owners of the stock of the corporation could be sued as well. Do you want to be held fiscally responsible for the debts of whatever company you own stock in? Sure.. you might try and sue the corporate officers you entrusted with running the company, but if they lack the ability to pay, you're on the hook for your share of the debt the corporation owes. Take that one to your lawyers. No... I like the situation as it is. Corporations exist to provide at least one degree of removal for individuals with an entrepreneurial vision. Hawk