Question

1. If the controlling majority of a corporation's stockholders vote to re-invest profits in a way that benefits employees or society, rather than disbursing that money to the shareholders, should that action be allowed? If the majority stockholders are not benefiting in an unfair manner by this decision, why should the minority have the ability to overturn the majority vote?

2. Should corporate income be double-taxed? Why or why not?

3.Should corporations enjoy the same freedom of speech rights that natural persons enjoy? Why or why not?

Pls post all three answers. It is a law ques

Answer 1

1- The action can be allowed if minority shareholders also vote for the decision. We have seen such case in Amazon when in 2013, it send letter to all the shareholders for re-investing profit for greater social cause. Minority shareholders have the right to protect the company from the mayhem of majority shareholder. It does not contain any provision where the judgement and value of majority shareholders to take a decision with out consent of minority will be upheld.Due to this if minority shareholders think that the decision will be not best for them they can overturn it.

2-It should not be double-tax. Corporate tax rate is hover between 30-35%, a large chunk of money is already paid by the shareholders as corporate tax so if corporate will be double tax, then the entrepreneurial spirit in the economy will be declined and it is unfair too. For one income there should not be double taxation.

3-No, corporation should not enjoy these rights. The rights are given to individual person which are necessity to live a dignified life in a society, to enjoy the liberty and fraternity in the society. Corporates are not natural person and they are created for a purpose only where as natural person are not living for a purpose only.