Judicial dissolution, sometimes called the corporate death penalty, is a legal procedure in which a corporation is forced to dissolve or cease to exist.
Dissolution is the revocation of a corporation's charter for significant harm to society. [2] In some countries, there are corporate manslaughter laws; however, almost all countries enable the revocation of a corporate charter. There have been numerous calls in the literature for a "corporate death penalty". [3] [4] [5] [6] Most recently a study argued that industries that kill more people each year than they employ should have an industry-wide corporate death penalty. [7] [8] Some legal analysis has been done on the idea to revoke corporate charters for environmental violations [9] [10] [11] such as for severe environmental pollution. Actual judicial dissolutions in the United States are rare. [12] For example, Markoff has shown that no publicly traded company failed because of a criminal conviction that occurred between 2001 and 2010. [13]
Companies suggested as deserving the corporate death penalty include Eli Lilly & Company, Equifax, Unocal Corporation, and Wells Fargo. [14] [12] [15] "If other examples in this volume were forced out of existence, this would send a message", John Hulpke wrote in the Journal of Management Inquiry in 2017. [16]
One argument against its use is that otherwise innocent employees and shareholders will lose money or their jobs. But author David Dayen argues in The New Republic that "the risk of a corporate death penalty should inspire active governance practices to protect their investments". [17]
The examples and perspective in this section may not represent a worldwide view of the subject.(September 2022) |
In 1890, New York's highest court revoked the charter of the North River Sugar Refining Corporation on the grounds that it was abusing its powers as a monopoly. [18]
In 2022, New York Supreme Court Judge Joel M. Cohen rejected a move by the state's Attorney General to dissolve the National Rifle Association of America. According to The Wall Street Journal , "the state's allegations of corruption and mismanagement by NRA top officials fell short of the public harm required to impose the 'corporate death penalty' on the nonprofit group". [19]
In 2023, numerous observers have described as a 'corporate death penalty' the order by a New York judge of the revocation of the business licenses of Donald Trump's businesses in the State of New York, which would force them into liquidation. [20] [21] [22]
In some jurisdictions, a judge or a government may have the freedom to:
A felony is traditionally considered a crime of high seriousness, whereas a misdemeanor is regarded as less serious. The term "felony" originated from English common law to describe an offense that resulted in the confiscation of a convicted person's land and goods, to which additional punishments including capital punishment could be added; other crimes were called misdemeanors. Following conviction of a felony in a court of law, a person may be described as a felon or a convicted felon.
Insider trading is the trading of a public company's stock or other securities based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider information are illegal. This is because it is seen as unfair to other investors who do not have access to the information, as the investor with insider information could potentially make larger profits than a typical investor could make. The rules governing insider trading are complex and vary significantly from country to country. The extent of enforcement also varies from one country to another. The definition of insider in one jurisdiction can be broad and may cover not only insiders themselves but also any persons related to them, such as brokers, associates, and even family members. A person who becomes aware of non-public information and trades on that basis may be guilty of a crime.
The Racketeer Influenced and Corrupt Organizations (RICO) Act is a United States federal law that provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization.
In criminology, corporate crime refers to crimes committed either by a corporation, or by individuals acting on behalf of a corporation or other business entity. For the worst corporate crimes, corporations may face judicial dissolution, sometimes called the "corporate death penalty", which is a legal procedure in which a corporation is forced to dissolve or cease to exist.
The Bank Secrecy Act of 1970 (BSA), also known as the Currency and Foreign Transactions Reporting Act, is a U.S. law requiring financial institutions in the United States to assist U.S. government agencies in detecting and preventing money laundering. Specifically, the act requires financial institutions to keep records of cash purchases of negotiable instruments, file reports if the daily aggregate exceeds $10,000, and report suspicious activity that may signify money laundering, tax evasion, or other criminal activities.
The term "white-collar crime" refers to financially motivated, nonviolent or non-directly violent crime committed by individuals, businesses and government professionals. The crimes are believed to be committed by middle-class individuals for financial gains. It was first defined by the sociologist Edwin Sutherland in 1939 as "a crime committed by a person of respectability and high social status in the course of their occupation". Typical white-collar crimes could include wage theft, fraud, bribery, Ponzi schemes, insider trading, labor racketeering, embezzlement, cybercrime, copyright infringement, money laundering, identity theft, and forgery. White-collar crime overlaps with corporate crime.
Furman v. Georgia, 408 U.S. 238 (1972), was a landmark criminal case in which the United States Supreme Court invalidated all then existing legal constructions for the death penalty in the United States. It was a 5–4 decision, with each member of the majority writing a separate opinion. Following Furman, in order to reinstate the death penalty, states had to at least remove arbitrary and discriminatory effects in order to satisfy the Eighth Amendment to the U.S. Constitution.
Probation in criminal law is a period of supervision over an offender, ordered by the court often in lieu of incarceration.
The U.S. attorney for the District of New Jersey is the chief federal law enforcement officer in New Jersey. On December 16, 2021, Philip R. Sellinger was sworn in as U.S. Attorney. The U.S. District Court for the District of New Jersey has jurisdiction over all cases prosecuted by the U.S. attorney.
Capital punishment is a legal penalty in China. It is applicable to offenses ranging from murder to drug trafficking. Executions are carried out by lethal injection or by shooting. A survey conducted by TheNew York Times in 2014 found the death penalty retained widespread support in Chinese society.
Jed Saul Rakoff is a senior United States district judge of the United States District Court for the Southern District of New York.
Asset forfeiture or asset seizure is a form of confiscation of assets by the authorities. In the United States, it is a type of criminal-justice financial obligation. It typically applies to the alleged proceeds or instruments of crime. This applies, but is not limited, to terrorist activities, drug-related crimes, and other criminal and even civil offenses. Some jurisdictions specifically use the term "confiscation" instead of forfeiture. The alleged purpose of asset forfeiture is to disrupt criminal activity by confiscating assets that potentially could have been beneficial to the individual or organization.
Corporate manslaughter is a crime in several jurisdictions, including England and Wales and Hong Kong. It enables a corporation to be punished and censured for culpable conduct that leads to a person's death. This extends beyond any compensation that might be awarded in civil litigation or any criminal prosecution of an individual. The Corporate Manslaughter and Corporate Homicide Act 2007 came into effect in the UK on 6 April 2008.
The U.S. state of Maryland has various policies regarding the production, sale, and use of different classes and kinds of drugs.
Lanny Arthur Breuer is an American criminal defense lawyer who currently serves as vice chair of Covington & Burling LLP. From 2009 to 2013, he served as Assistant Attorney General for the Criminal Division of the U.S. Department of Justice under President Barack Obama. From 1997 to 1999, he served as Special Counsel to President Bill Clinton. He is a fellow of the American College of Trial Lawyers.
United States federal probation and supervised release are imposed at sentencing. The difference between probation and supervised release is that the former is imposed as a substitute for imprisonment, or in addition to home detention, while the latter is imposed in addition to imprisonment. Probation and supervised release are both administered by the U.S. Probation and Pretrial Services System. Federal probation has existed since 1909, while supervised release has only existed since 1987, when it replaced federal parole as a means for imposing supervision following release from prison.
In traffic laws, a hit and run or a hit-and-run is the criminal act of causing a traffic collision and not stopping afterwards. It is considered a supplemental crime in most jurisdictions.
The Seaman's Manslaughter Statute, codified at 18 U.S.C. § 1115, criminalizes misconduct or negligence that result in deaths involving vessels on waters in the jurisdiction of the United States.
Carey Dean Moore was a convicted murderer, executed by lethal injection by the state of Nebraska. It was the first execution in Nebraska using lethal injection, and the state's first execution since 1997. The execution was the first in the United States to use fentanyl.
Two related investigations by New York State and City officials were opened by 2020 to determine whether the Trump Organization has committed financial fraud. One of these is a criminal case being conducted by the Manhattan district attorney (DA) and the other is a civil case being conducted by the New York State Attorney General (AG). The DA's case has led to two of the organization's subsidiary companies being found guilty of 17 charges including tax fraud and the indictment of Donald Trump, while the AG has succeeded in imposing an independent monitor to prevent future fraud by the organization.