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View Diary: Corporatocracy (48 comments)

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  •  All true (2+ / 0-)
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    citylights, hannah
    They got their start in the Americas when the crowned heads of Europe issued charters and grants to companies on the basis of which they could stake a claim to new lands and which the armies of the royals were then empowered to defend. It's the rule of law.  A marvelous invention.
    But, there's more. The first corporations had one more very significant purpose: to unfurl the corporate veil over the investors, i.e., to limit the liability of stockholders in the event that something went wrong by shielding the investors' personal assets beyond their investment in the corporation. Until corporations like the Virginia Company of London were formed, many potential investors looked askance at the prospect of risking their personal fortunes on the search for gold in the new world, the purpose of the earliest trips.

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