I have been thinking. Maybe corporate fines should work like civil forfeiture. You do not attack the corporation, you attack the shares. You fine individual shares. And fines could be larger than value of the share. Next time it is sold the sale price goes toward the fine. And so does any dividend paid.
> You do not attack the corporation, you attack the shares. You fine individual shares. And fines could be larger than value of the share.
You're again reinventing corporate fines in a way that makes them problematic. You've not only dissolved limited liability, which makes investing in equities a rich man's game, you're proposing going after tens if not hundres of millions of Americans if a single Fortune 500 breaks a law. That's mechanically impossible.
> Next time it is sold the sale price goes toward the fine. And so does any dividend paid.
Poor people pay the fine. Rich borrow against their shares.
None of these problems exist with massive fines. None of them add anything, procedurraly or punitively, over massive fines. The idea that shareholders are going to do legal scrutiny when many professional investors barely read public filings is laughable. Re-inventing fines is rolling your own legal system when we have centuries of good law to rely on deriving from corporations suing each other.
