chemotaxis
5 hours ago
Wouldn't personal property in the US fall under the same criteria, in the sense that the government can sue the property itself (civil forfeiture)?
But I think the boring answer here is that we sometimes need legal abstractions. If they don't exist, Microsoft is no longer a distinct entity; it's 200,000 people who for some reason talk to each other, and you can't really audit their finances, punish them collectively, or set any ground rules that apply specifically to their joint activities.
This obviously has negative externalities, because while a corporation is easy to fine, it's hard to put in prison... but trying to approach it differently would be about as fun as modeling a CPU as a bunch of transistors.
nzeid
an hour ago
> But I think the boring answer here is that we sometimes need legal abstractions.
Absolutely - the legal abstraction is that corporations are corporations, not people. The article went with a lighter hearted quip but here's my own tired old one:
If corporations are people, then owning shares is unconstitutional as that would be a form of slavery.
monocularvision
11 minutes ago
And if corporations aren’t people, then the New York Times has no right to the First Amendment.
jmye
8 minutes ago
I'm curious what you think "Congress shall make no law [...] abridging the freedom of [...] the press" means, in this case. Did you just not know what the actual text is, or ... ?
xg15
an hour ago
Well, then share buybacks are just the corporation reclaiming its freedom. Everything makes sense now...
arrosenberg
3 hours ago
> This obviously has negative externalities, because while a corporation is easy to fine, it's hard to put in prison... but trying to approach it differently would be about as fun as modeling a CPU as a bunch of transistors.
There's nothing stopping the legislature (other than their own self-interest) from passing a law that executives and board members are criminally liable for the malfeasance of their entity. We already apply that logic to positions like a medical lab director.
jojomodding
3 hours ago
This is already the case. Or rather, a corporation can not (e.g.) commit murder or theft because that usually requires some physical action. That physical action will be performed by a human, who can then be found guilty. If he was ordered to do so by (e.g.) the board, the board will be held as accessory to the crime and cam also be found guilty.
The problem is just that the board can usually claim they did not know, and that they have deep pockets to afford good attorneys. To get around the first thing, you have strict liability laws.
Strict liability laws, though, are how you end up with the situation where barkeepers are criminally liable for selling alcohol to underage people, even if they could not have known the buyer was underage (and that's about the only instance of strict liability in criminal law). I personally find this very unjust and would rather that strict liability was not part of criminal law.
PopAlongKid
2 hours ago
> a corporation can not (e.g.) commit murder or theft because that usually requires some physical action.
Not true. Consider investor-owned utility PG&E in northern California.
"While on probation [for previous felonies], PG&E pleaded guilty to 84 felony counts of involuntary manslaughter for a 2018 wildfire that wiped out the town of Paradise, about 170 miles (275 kilometers) northeast of San Francisco."
https://www.npr.org/2022/01/24/1075267222/californias-embatt...
arrosenberg
3 hours ago
If they know about malfeasance and don't stop it, they are complicit; if they don't know about it, they are grossly negligent. In either case, they should be held accountable for the crimes. Maybe in an ideal world it would not be that way, but since we are seeing corruption run amok in corporate board rooms, it's clear they need a greater incentive to police their organizations.
thewebguyd
2 hours ago
What we have is a severe lack of enforcement of the laws we do have.
We do have legal mechanisms to hold the individual people criminally liable for criminal offenses the corporation commits, the problem is we don't enforce it.
Boeing just got off scott free for killing 338 people. DOJ told the judge to dismiss the case.
We've also neglected to enforce our own anti-monopoly laws for far too long, and most recently when there could have been actual, real change, we let Google go with nothing more than a slap on the wrist.
The laws aren't the problem, the corrupt and paid for DoJ is the problem.
anon291
2 hours ago
I mean we live in a country where 'defund the police' and 'eliminate jails' are considered somewhat mainstream legal positions (In that there are many politicians elected to office throughout the country who have held these views). All of its stems from a lack of desire to enforce standards.
chowells
an hour ago
Given that neither the police nor jails are relevant to corporate violations of the law, do you have a point other than that you don't understand either of those?
rcxdude
2 hours ago
There is already a standard of evidence for this: "Knew or should have known". Which covers needing to exercise a certain standard of care, but without the overly rigid definition of strict liability (something that tends to result in very stupid and unfair situations).
anon291
2 hours ago
The are already liable and have always been liable if it can be shown they had knowledge of it. The logic is already applied. Corporations are not people, but they are legal persons. For some reason, using language that sounds the same makes people confused and causes a large section of society to get irrationally angry.
wahnfrieden
3 hours ago
It's always possible to think up new rules that solve social issues. The challenge is seeing how such rules would ever robustly come into place. In your example, medical lab directors have no lobbying power and less dramatically profitable upside to their activities.
arrosenberg
3 hours ago
That's exactly my point. It's not hard to figure out how to "put a corporation into prison", the issue is that we've been trained to accept corruption as a normal facet of corporate personhood.
otterdude
2 hours ago
The answer if for congress to make a legal definition of corporation, instead we get the justice system coming up with a handwavy explanation that helps out their golfing buddies.
The answer is to get rid of the common law justice system and codify laws in congress like a civil law system. That way you dont get rich people trying to buy favors or "tip" judges.
twelvechairs
2 hours ago
I dont think youd get less rich-people-friendly decisions from ccongress. It may well be the opposite. Certainly it removes some of the separation of powers.
otterdude
37 minutes ago
No but i think you get more accountability and visibility. Right now we could never do this but in a functioning democracy I think it would be prudent.
In civil law when there is no clear precedent congress gets involved preventing the kind of critisisms we get in our legal system of activist judges ect.
anon291
2 hours ago
The treating of a corporation as a 'person' (which is a widely held misconception that doesn't really exist) rests in English common law, not any statute. Corporate personhood does not mean anything of what most people think it does. Corporations are obviously not people and are not treated as such.
otterdude
an hour ago
My point is the benefit greatly from the distinction, never codified in law. They have more rights and fewer responsibilities than actual people!
They way it "should" be is that congress creates a legal framework for coporations, then justices enforce that. Instead we are living with a nearly two centuries old common law that makes peoples lives worse.
My argument that if corporations are people, then they cannot be bought or sold is the kind of argument you can use to create legal precedent by suing some company over a merger or buyout to test the law and the strength of the original case law.
roywiggins
4 hours ago
Property can't enter into contracts or own bank accounts, which is probably the big marker for traditional corporate personhood. It might be possible to sue property but property can't itself sue, so it's not the same type of thing as a corporate person, which can.
You wouldn't need "in rem" jurisdiction if there was a legal person to sue, you'd just call it "in personam" like normal.
AlotOfReading
4 hours ago
Estates do most of that without any notion of personhood. Suing an estate is in rem. When the estate sues someone else, the executor sues on its behalf. The executor can also enter the estate into new contracts and administer the bank accounts it owns, and so on. The estate can even own a corporation.
degamad
27 minutes ago
The estate "inherits" (pun intended) its abilities from the personhood of the deceased. It is in effect a legal "Weekend at Bernie's", keeping the deceased party legally alive in order to continue their interests until those interests can be appropriately disposed of.
The estate doesn't have independent interests distinct from those of the deceased. (In particular, the estate is not owned by, and does not serve, the beneficiaries.)
A corporation has independent goals and interests from any of its owners or officers.
ar_lan
an hour ago
> while a corporation is easy to fine, it's hard to put in prison...
It would be interesting if there were some tangible way to prevent the company from performing operations for some period of time.
I don't think this is viable or even necessarily a good idea, but the concept that "Meta illegally collected user data in this way" means they cannot operate for 5 years. It would probably involve large deconstruction of megacorps into "independent" entities so when one does something bad, it only affects a small portion of the overall business. Almost introducing a concept of "families" to the corporate world.
But the rabbit hole is odd. Should (share)holders be complicit too, as they are partial owners? I think not.
Corporate entities and laws governing them are definitely weird.
notarobot123
an hour ago
Inheriting and extending existing abstractions out of convenience has a lot of unintended consequences and makes for a messy and complicated system in the long-run. Yet a full rewrite at this stage is out of the question.
I guess the legal system discovered the "worse is better" philosophy before we did.
xg15
4 hours ago
I think there is a difference between having some sort of legal entity to classify organized groups as - and that legal entity being equivalent of a person.
ThrowawayTestr
2 hours ago