First published at 12:00 UTC on January 15th, 2019.
A question because it doesn’t make sense. A corporation, its purpose, is to act according to a charter, thereby avoiding any personal bias and limiting the personal liability of those who are invested and employees acting according to that charter. …
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A question because it doesn’t make sense. A corporation, its purpose, is to act according to a charter, thereby avoiding any personal bias and limiting the personal liability of those who are invested and employees acting according to that charter. Corporations register with the Secretary of State of a State, and in most cases are located in Delaware due to it being the most secure regarding secrecy. I say secrecy because a corporation, though treated as a person for tax purposes, is not alive, a corporation is a dead entity a “corpse” without the “e” (pronounced unlike the military use of the term). Incorporation in the US is an act of agreement to the laws of the United States by the mere intention of incorporation alone, affirmed by the terms of the documents of incorporation.
When a corporation acts in a personal manner, and inconsistent with its charter, that’s when it can accrue liability against directors, executives, and investors.
For example using Social Media, say a company is claimed, as CEO Jack Dorsey of Twitter said, “left-leaning.” Legally that’s only possible when registered as a political organization, otherwise “left-leaning” is inconsistent with the entire existence of a corporation. A corporation can have ethics. Ethics are a method of calculation in relation to risk where decision are entirely based upon what is in the best interest of the corporation, and that is how corporations have no bias and afford protection from personal liability. After Ford Pintos were exploding from a rear end collisions a memo that I can’t even find an image of which said “It’s cheaper to let them burn” featuring a cost benefit analysis using the ethical “whats best for the corporation” standard, http://www.spokesman.com/blogs/. This memo made it into court cases.
As one searches the web they can see Ford suffered greatly in the court system and had to afford the lives of those effected by Pintos that had exploded in a cash settlement or monthly payments until ..
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