Re: Corporate liability (WAS: Environmentalism in a Free society)

Michael Lorrey (
Mon, 14 Dec 1998 14:35:54 -0500

Samael wrote:

> -----Original Message-----
> From: Michael Lorrey <>
> >Since a shareholder, when not prevented by the government, has the right to
> >examine all corporate documents, then current technology allows for
> software
> >driven complete due diligence if all company records
are digitized (which
> can
> >easily be made a standard by PPA polices). Granted that it was much easier
> in the
> >past for a corporation to hide things, but this is no longer the case.
> What makes you think that when a corporation is freed from its constraints
> it won't stop people accessing it's records? Or covering them up?

PPL involves interlocking insurance arrangements and arbitration precedents, much as in civil and common law. In order for a corporation to be insured, it must agree to the policies of the PPA they are insured with. A corporation which engages in stock fraud rapidly loses value, and the officers of the corporation engaging in the fraud can have civil action taken against them by the corporate PPA, as well as the PPA of an independent stockholder association, and the PPA of the employee union. Given such interlocking agreements, it becomes standard practice in any corporation wishing to maximize stock value to open corporate records to stockholders for due diligence purposes. If a corporate officer engages in liable actions in contradition to stated corporate policy, they become individually liable, and are not sheilded even by current day limited liability corporate legal practices.

Mike Lorrey