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To: Copernicus
"I endorse and will cast my vote for Mr. Badnarik"

Mr. Badnarik position (and therefore I assume the LP's position) on corporations, is the fundamental premise of a corporation, that it is viewed by the law as an individual, and stockholders are exempted from liability of the corporation's actions, should be ended.

This is immensely idotic. Note, this is not about holding CEOs or boards of director's liable, this is about holding stockholders liable. He suggests a new industry, stockholder portfolio liability insurance, could be created to address the problem.

This, in one fell swoop, would crater the stock markets.

The end of LLCs would destroy many small businesses.

It would create a new kind of lawsuit: The reverse class action, where, instead of a class suing an individual, and individual could sue a class.

Could you imagine the poor rank and file Enron employees with their worthless stock in their 401k's being sued? In Badnarik's world, as Enron was bankrupt, those suing Enron could go after the homes and savings of the former employees.

This seems completely counter to the concept of the Libertarian Party, which in Badnarik view, must be about the liberty to sue.

Here are Badnarik's own words:

"Stockholders are owners, and should be liable for the consequences of that ownership like any other owners. I have no doubt that the market will come up with "portfolio insurance" to protect the stockholders from ruinous claims, but that in itself will provide a market check on unrestrained, unaccountable growth -- companies which act irresponsibly will find that their stockholders can't buy, or have to pay unreasonably high, insurance premiums, and therefore aren't interested in having the stock."

Of course, in Badnarik's world, I wonder who insures the stockholders of the portfolio insurance companies?

115 posted on 10/24/2004 1:53:34 PM PDT by magellan
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To: magellan
Badnarik, as a Libertarian, believes in the checks and balances of a free market economy.

These artificial creatures of law called "corporations" actually limit checks and balances rather than encourage them.

Best regards,

143 posted on 10/24/2004 5:40:31 PM PDT by Copernicus (A Constitutional Republic revolves around Sovereign Citizens, not citizens around government.)
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