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Lamrot Hakol (Despite Everything)

Musings and kvetchings and Torah thoughts from an unconventional Orthodox Jew.

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"I blog, therefore I am". Clearly not true, or I wouldn't exist except every now and then.

Monday, January 25, 2010

Corporate Limitation Amendment

The Corporate Limitation Act (CLA) does not ban companies. Companies existed before corporations obtained their "legal personhood", and they will exist even after the passage of the CLA. But the liability of a corporation will be held by individuals. This increases the risk of investment, and may, in the short run, reduce investment, but it is the risks permitted by the limited liability system and the granting of rights to corporations as "persons" which have caused every market failure from the Great Depression to the current recession.

This is a work in progress. Once the language is worked out, we're going to start with petitions. Comments are welcome.

Corporation Limitation Act

Section 1. The provisions of the 14th amendment to the Constitution of the United States, guaranteeing equal protection of the laws to all persons within its jurisdiction, shall apply only to individual human beings. Corporations shall have no legal standing outside of the contractual rights and obligations entered into by the persons who own them. The ability to bring suit or to have suit brought against one shall be limited to human beings, individually and in the aggregate.

Section 2. All debts owed to a corporation or by a corporation shall be owed to or by shareholders of that corporation according to the proportion defined in the bylaws of the corporation. If no proportions are defined therein, debts shall apply to shareholders in direct proportion to their ownership of the corporation.

Section 3. No corporation shall own another corporation. Any corporate ownership of a corporation at the time this article goes into affect shall be transfered to shareholders in the parent corporation according to the bylaws of the parent corporation. If no proportions are defined therein, ownership of the child corporation shall be transferred to shareholders of the parent corporation in direct proportion to their ownership of the parent corporation.

Section 4. The provisions of this article shall apply equally to corporations and any other legal structures of ownership. The provisions of this article shall apply equally to corporations based in the United States and corporations based outside of the United States.

Section 5. The Congress shall have power to enforce, by appropriate legislation, the provisions of this article.


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