Comment: Corporations are "Legal Fiction" - Limited Liability.

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Corporations are "Legal Fiction" - Limited Liability.

Corporations are "Legal Fiction" - Limited Liability.

They can pretend to be a "Legal Person" with a "Factious Name Certificate" & sell stock & bond of their "Legal Fiction."

They came about centuries ago. Remember American history about:

  • American Colonies such as Massachusetts Bay Colony

The joint-stock company was the forerunner of the modern corporation. Colony & Charter are forerunners of the joint-stock company. Somewhere, royalty caught on to this racket. Royalty started granting charters specifying privileges & royalties. Limiting liabilities.

    "As the city of London filled to capacity in 1600, Richard Hakluyt suggested to Queen Elizabeth that settlements in the New World might relieve the city of some of its poorer folks."

    REASONS OR MOTIVES for the raising of a PUBLIC STOCK to be employed for the peopling and discovering of such countries as may be found most convenient for the supply of those defects which this Realm of England most requires [the following]:

    8. Where colonies are founded for a public-weal, they may continue in better obedience and become more industrious than where private men are absolute backers of a voyage. Men of better behavior and quality will engage themselves in a public service, which carries more reputation with it, than a private, which is for the most part ignominious in the end, because it is presumed to aim at a profit and is subject to rivalry, fraud, and envy, and when it is at the greatest height of fortune can hardly be tolerated because of the jealousy of the state.

    – Richard Hakluyt, "Reasons for Raising a Fund to Settle America On the Value of Colonies to England" (January 5, 1607)

http://www.ushistory.org/us/2b.asp

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul