To: i-node who wrote (50095 ) 8/2/2013 7:37:23 PM From: Broken_Clock Respond to vjel.org [2] Although a corporation has a legal existence, an important distinction between a corporation and a human being is that the corporation lacks a commensurate physical existence. [3] The effect of this lack of a physical existence is that a corporation becomes a shape-shifter, able to change and discard legal personas with an ease that no human, no matter how clever, can match. When corporations are faced with the prospect of substantial liabilities, they are able to use the law to avoid their duties through clever legal maneuvering. This article explores how corporations are able to manipulate the law in order to avoid liability for their actions. Specifically, Section II of this article examines the actions of one corporation- W.R. Grace & Co. ("Grace")- in an effort to understand just how corporations are using the law to avoid liability. Section III examines corporate law in a broader context, discussing the aspects of the law which have developed to protect creditors and the reasons why current legal protections are insufficient. Section IV provides a range of solutions to the current laws with an eye towards protecting involuntary creditors and assigning responsibility. These solutions include, among others, changes to the current laws regarding limited liability, corporate powers, and the "piercing the corporate veil" doctrine. Finally, Section V concludes with a vision of the law which burdens corporations with responsibilities commensurate with their rights.
