Interesting, thanks for your reply. (Thanks everyone else too - I'm enjoying this thread).
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Originally Posted by ThoughtAddict  Well, it depends. One can set up a corporation or LLC in such a way that it is impossible to lose control of the company. The question is whether investors would accept shares in those companies, knowing that they have extremely limited rights. In many cases, I think that investors would be cautious before making such investments. |
Yes, I guess investors might need some recourse just in case some unscrupulous business owners withheld the profits that rightfully belong to the investors.
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The change would probably lead to new, adaptive laws being written which provide more protection to minority stakeholders... the whole face of business organizations would change, probably preventing non-profit driven motives even in companies that try to be socially responsible.
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Hmm, I guess you're probably right. It always seems like corruption somehow works its way into any given system.
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Exorbitant interest rates are already illegal. They still occur. Just ask the mob.
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Hmm... the mob scares me, so I guess I won't discuss the mob.
I think payday loan places somehow manage to get away with outrageous usury as well. Unless I'm mistaken (or unless things have changed recently), I think the loophole they exploit is charging immense fees, and not referring to it as interest, so it's not covered by the usury law.
Most or all credit card companies do something similar when they charge massive $39 late and overlimit fees, and on top of that, add those fees to the principal balance and charge interest on that - among other dirty tricks.
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The current laws against usury (unconscionable rates) and allowing bankruptcy are designed to protect borrowers. There will probably be new regulations soon designed to prevent the subprime practices which have hurt many borrowers. The system isn't perfect... but the alternative is probably worse.
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Yes, I guess either extreme (no restrictions or total restriction) would likely be bad for various reasons.
Best wishes,
Apollia