Natural resources - who pays for it anyway?
One of the Dilemmas of the modern Corporatized society is, to what extent should a Limited liability company be allowed to take a risk? In a Limited liability structure the equity shareholders, conventionally known as the owners, are liable only to the extent of the paid-up capital. Whereas the company itself has unlimited liability ie. The company by itself will need to discharge its liability to its stakeholder even if it means to liquidate itself. Considering the multiplicity of the stakeholders in a company the issue becomes complex. Companies carry a much larger risk burden than its capacity to shoulder. Considering cases of BP oil spill. The extent of damage done to the environment, Coastal communities and other stakeholder is of such extent that it is impossible to put a value to it. Who is responsible to compensate the loss? The company by itself is incompetent even if it means to liquidate itself, the shareholders are protected by the vial of their limited liability. Eve...