How Corporations Turned Into Political Beasts
In other words, this separateness is what makes capital markets possible. And capital markets are essential for the development of a vibrant national economy. Beyond that, corporations can exist long after the life of any individual that invests in, or works for, them. This means, as the legal scholar Lynn Stout has pointed out, that corporations provide a mechanism for society to make long-term, intergenerational investments that are not linked to government or a specific family.
Finally, as noted above, the government corporation may be established to serve an enduring purpose or may serve as a vehicle for privatization. In the typical contemporary Congress, several bills are introduced to establish government corporations. At the time of publication of this report, two bills had been introduced in the 112th Congress to improve U.S. infrastructure by establishing government corporations—H.R.
In government corporations, under this reasoning, because ownership resides in the government alone, there is no inherent need for a board of directors. The federal government does not possess a general incorporation statute as states do. Each government corporation is chartered through an act of Congress. The use of separate acts to charter each corporation has resulted in wide variance in the legal and organizational structure of government corporations. That said, the Government Corporation Control Act of 1945, as amended, does provide for the standardized budget, auditing, debt management, and depository practices for those corporations listed in the act.
A pledge, agreement, or mortgage made for the benefit or security of any of the corporation’s bonds continues in effect until the principal of and interest on the bonds benefited or secured by the pledge, agreement, or mortgage have been fully paid. A corporation to which this section applies may contract with any person to provide the job training authorized under this section. Purchasing and holding a mortgage, deed of trust, or other security interest or contracting for the servicing of a mortgage, deed of trust, or other security interest is not considered the operation of a project. The user under a lease, sale, or loan agreement relating to a project is considered the owner of the project for purposes of ad valorem taxes, sales and use taxes, or any other taxes imposed by this state or a political subdivision of this state. A corporation may recover the costs of an investment under Subsection from a unit or another corporation under a contract with a limited or unlimited duration.
To fight corporate personhood, they are bolstering shareholder primacy. The power of corporations is frequently misused, usually to the advantage of the financial and managerial elite. Employees, communities, consumers, the environment, and the public interest in general are elbowed aside in corporate decisionmaking, unless the corporation can make money by taking them into account. Corporations are managed aggressively to maximize shareholder return.
The service sector is acknowledged to exist, but its power and importance are said to be minuscule. Galbraith calls for “the educational and scientific estate” – the intellectuals, the universities, etc. – to act so that the needs and goals of the industrial system do not swamp everything else. The GAO Glossary includes entries related to government corporations,one related to “mixed-ownership” and the other “wholly-owned” government corporations. The Glossary itself does not have entry for the termgovernment corporation.