If the corporation is a person – and the hypothetical eight members of the BOD hire a CEO by employment contract – and compensate him greater than the corporation profits can fund – can the “corporation, as an individual entity” bring suit against the BOD for theft of assets, and undue danger of financial ruin?
I have been advocating that a corporation is indeed a separate entity, from all employees, including Board of Directors, executive management – all with or without an employment contract. Yet – it is common news that members of the executive management staff are still knowingly putting the “entity” in financial danger and subjecting it to further fines of damages. Therefore, I think the corporate model is being played out as a scapegoat and carrying the brunt of misrepresentation, fraud, and grand theft – at the detriment of all other innocent employees and shareholders.
How can laws protect the corporate model, when contracted employees use its assets as if they are personal property?