Benefits of the Corporate Shareholder Veil of Personal Liability Protection

1299 WordsJan 8, 20185 Pages
Benefits of the Corporate Shareholder Veil of Personal Liability There are many benefits to shareholders, and by implication to society, as a result of the existence of the corporate veil of personal liability protection. These range from limiting the financial responsibility of a corporate entity to establishing the basis for America's cultural traditions of a right to privacy. Both of these elements give credence to the idea that if a "person" acts in good faith to conduct business in a way that is consistent with ethical and operational standards, he should be entitled to the protections of his right to make money on his work and value. Corporations (or a group of companies acting in solidarity) are seen as an extension of this concept except through the recognition that a person doesn't just mean a person a viewpoint now firmly engrained in law. Corporate shareholder protections have been vested with the task of separating the underlying assets of this new entity, improving the monitoring of these distinctions, and providing a way to establish credit and other borrowing capacities for the health of the business proposition (Kryvoi, 2011). For corporations to be judged by the good standards of other business actors, they need to be provided the means and the trust to make their transactions credible. If this occurs, than all parties and society as a whole is more guaranteed of a likely credible ROI (return on investment). For this veil of corporate liability protection

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