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RE: Steemit: Showing Why We Need To Get Rid Of Private Companies
The business goes bankrupt, not the man. The man is responsible for the bankruptcy as he was responsible for the business. The part that makes no sense is that "no one will want to start a business if they are personally liable for the business". The whole point of private business isn't to avail oneself of liability, if your business goes bankrupt who wants to start a business if when they go bankrupt they are completely, totally liable for the bankruptcy..
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Legally speaking, this is a very nuanced subject. However, by all accounts, a company is incorporated as a separated entity in the eyes of the law.
If a company falls in debt, only the company assets are at risk, nothing is to stop directors to not assume responsibility for company debt unless found acting wrongfully.
Can't believe I have to research this subject to get my facts right.
To go back to our main points, I just don't see the possibility of the idea of companies going away overnight.
The DAO is great an all.. But history shows that the moment things goes south everyone immediately lawyers up and asked "which company is behind the DAO". It was a fun week on Reddit for me Tbh.
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The distinction is between Directors (employees) and Owner (employer).
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