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No, corporations are not people. People have hearts. They have kids. They get jobs. They get sick. They thrive. They dance. They live. They love. And they die. And that matters because we dont run this country for corporations, we run it for people: Eliza Essay Example

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No, corporations are not people. People have hearts. They have kids. They get jobs. They get sick. They thrive. They dance. They live. They love. And they die. And that matters because we dont run this country for corporations, we run it for people: Eliza

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This form of protection is however questioned at times because even though shareholders may not be sued in person, when the corporation uses its money to pay off debts, it becomes the investment of investors that is indirectly used for this purpose (Geraghty, 2002).The concept of corporate civil liability can be said to have emanated from corporate personality because it determines the applicability of holding a corporation liable for acts of omissions and commission by natural person employed by the corporate (Niederhoffer, 2005). Since section 588V of the Corporations Act 2001 acknowledges the principle of corporate legal personality, it can be said that it supports the idea of corporate civil liability. More specifically, the Act professes for corporate liability to be used in civil law rather than criminal law (Wells, 2001). The reason for this is that unlike criminal liability, civil liability is easy to proof. Meanwhile, section 588V of the Act requires much evidence in finding a corporation guilty of offence when it contravenes.On the surface, one is likely to argue that since under corporate liability natural persons in charge of a corporation cannot be sued for acts and omission committed in the name of the corporation, then it is shareholders rather than creditors who are protected. Section 588v of the Corporations Act 2001 however helps in clearing this misconception. This is because the section actually seeks to promote the regulation of corporations by supporting corporate civil liability. The reason this is said is that even though the natural persons may not be directly held responsible, corporation are forced to emphasize on due diligence and the responsible management, knowing that indeed when there are any lawsuits, it will be the corporation as an entity, of which they head that will be brought to disrepute.Because of the level of corporation regulation the Act ensures, creditors, as much as shareholders are guaranteed of protection when they lend to corporations (Leigh, 1977). This is because even though shareholders may not be sued as individuals, the ultimate aim of the creditor will always be to get their monies paid whether the payment is done by shareholders as individuals or is done by the corporation as an independent entity. For example the section states that a contravening corporation is one that “is the holding company of a company at the time when the

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References

Bervas, A. (2006). Market Liquidity and its incorporation into Risk Management. Financial Stability Review 8, 63–79.

Bhaduri, R., Meissner G. and Young J. (2007). Hedging Liquidity Risk Journal of Alternative Investments, 5(2), 34-56.

Corporations Act 2001 - Sect 588V

Geraghty, G. (2002). Corporate Criminal Liability. American Criminal Law Review. 39, 327.

Gobert, J. (1994). Corporate Criminality: New Crimes for the Times. Criminal Law Review. 54(2), 722.

Gobert, J. (1994b). Corporate Criminality: Four Models of Fault. Legal Studies. 14, 393.

Lederman, E. (2000). Models for imposing corporate criminal liability: from adaptation and imitation toward aggregation and the search for self-identity. Buffalo Criminal Law Review. 4, 641

Leigh, L. (1977). The Criminal Liability of Corporations and Other Groups. Ottawa Law Review. 9, 247.

Niederhoffer, V. (2005). Practical Speculation. New York: John Wiley & Sons Inc.

Salomon v A Salomon & Co Ltd [1896] UKHL 1

Wells, C. (2001). Corporations and Criminal Responsibility (2nd edition). Oxford: Oxford University Press.

Wells, C. (2001b). Corporate Criminal Liability in Europe and Beyond. New South Wales Law Society Journal, 39, 62-66.

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preview essay on No, corporations are not people. People have hearts. They have kids. They get jobs. They get sick. They thrive. They dance. They live. They love. And they die. And that matters because we dont run this country for corporations, we run it for people: Eliza
  • Pages: 5 (1250 words)
  • Document Type: Essay
  • Subject: Law
  • Level: Masters
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