Home > Uncategorized > Fixing the Rules of the Game to require MORE “SKIN IN THE GAME”.

Fixing the Rules of the Game to require MORE “SKIN IN THE GAME”.

[from a Facebook post]

Fixing the Rules of the Game to require MORE “SKIN IN THE GAME”.

I’m not suggesting “removing limited liability,” because this would both be changing the rules of the game for existing shareholders and of course be vehemently opposed by existing firms. Rather, we need for states to start deregulating for small businesses whose owners/shareholders do not hide behind limited liability, live in the communities in which they operate and hence are susceptible to claims of damage by local people. There’s no reason to think that these organizations would remain tiny; Lloyds of London used to be a huge syndicate of unlimited liability names, Amex used to be a LISTED unlimited liability corporation, and there still are some fairly large partnerships.

As I have said elsewhere, “a curtailment of limited liability for torts could be hedged by shareholders via insurance, and could be achieved by state governments and the federal government offering more lenient regulation to business enterprises that operate as partnerships, unlimited liability corporations, or in cases where shares are NOT “fully paid up” so that calls for significant additional capital could be made against shareholders if needed to pay claims. “Creative destruction” by new firms will eventually bring down the limited liability firms.”


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