Let’s say I invest in a company, and the owner of the controlling interest starts to act not in the interest of the company, but in his own self interest, for example by giving the assets of the company freely to his family, or by appointing his friend to CEO and paying him enormous salary. Do you think that in a free society this would be considered a crime?
Depends on your contract. But typically, this would not happen, as contracts would have evolved to take care of this.
+1 Wheylous
Yea, that’s what I am thinking.
I’m writing an article about companies in free society, and how they would probably be different from each other, using various models based on contracts. Now there are only few such models made available by the state - companies, corporations and partnerships I think. What other models could there be, any ideas?
Thanks.
I’ll try to refine my question. What models of companies do people need yet the state won’t allow?
I have no clue. That would be determined by the market.
Aside from Wheylous’ point about the market deciding, it’s also not so much about companies we “need” and “state won’t allow”…it’s the fact that the state exists in the first place…by virtually any measure it’s a net loss…a burden. It exists through taxing the people. Get that? As in, being a tax on the productive members of society. Without it, the people in general would be much better off…not necessarily because they’ll be able to do things that they are currently forbidden from doing (although that would be a pretty big difference, namely to a lot of non-violent weed smokers), but because they’ll live in an economy that isn’t weighted down by the drag of the leviathan.