scholarly journals The alleged sins of the modern business corporation archetype in shaping the “boom-bust disaster capitalism”. A free market economics reappraisal.

2012 ◽  
Vol 1 (3) ◽  
pp. 177-185
Author(s):  
Octavian-Dragomir Jora ◽  
Mihaela Iacob
Keyword(s):  
Property Rights ◽  
Moral Hazard ◽  
Organizational Design ◽  
Private Property ◽  
Free Market ◽  
Limited Liability ◽  
Third Parties ◽  
The State ◽  
Business Corporation ◽  
Modern Business

Moral hazard defines the situation when the rightful owners of scarce resources are hampered by their entrusted agents from allocating these resources as they see fit, the later ones speculating not only the ubiquitous asymmetry of information, but the limitations, as coming from various state regulations, that impede the free and as complete as possible design of contracts in markets. The modern business corporation is said to be a particular headquarter of moral hazard – on one hand, between shareholders and managers, on the other, between itself and third parties – all that due to the legal shield that the “limited liability”, as “unnatural privilege granted by the state”, gives, fuelling propensity to pure speculation, and thus sending capitalism to ruinous instability. In our article, armed with reasoning coming from the Austrian School inspired libertarian ethics of private property rights (a rigorously reconstructed extension of classical liberalism precepts), we tried to enable the idea that in the corporation organizational design there is, ipso facto, nothing to be seen as an abusive license, granted by the state, through “limited liability” facility. In the light of this reappraisal, the corporation, the one that “strictly acts in the free market”, and so respects the societal division of labour, third parties’ legitimate property rights, not abusing the privileging safeguards (such as monopoly, customs protection or public subsidies, that incite the corporate actors to adopt abusive behaviours), is considered a socially benign capitalist pivot.

Konsep Distribusi Pendapatan Dalam Islam

2016 ◽  
Vol 1 (1) ◽  
pp. 85-97
Author(s):  
Moh. Ah. Subhan ZA
Keyword(s):  
Property Rights ◽  
Social Life ◽  
Private Property ◽  
Wealth Distribution ◽  
The State ◽  
Private Property Rights ◽  
Job Opportunities ◽  
The Rich ◽  
The Difference ◽  
Distribution Of Income

The main problem of social life in the community is about how to make the allocation and distribution of income well. Inequality and poverty basically arise not because of the difference of anyone’s strength and weakness in getting livelihood, but because of inappropriate distribution mechanism. With the result that wealth treasure just turns on the rich wealthy, which is in turn, results in the rich get richer and the poor get poorer.Therefore, a discussion on distribution becomes main focus of theory of Islamic economics. Moreover, the discussion of the distribution is not only related to economic issues, but also social and political aspects. On the other side, the economic vision of Islam gives priority to the guarantee of the fulfillment of a better life. Islam emphasizes distributive justice and encloses, in its system, a program for the redistribution of wealth and prosperity, so that each individual is guaranteed with a respectable and friendly standard of living. Islam recognizes private property rights, but the private property rights must be properly distributed. The personal property is used for self and family livelihood, for investment of the working capital, so that it can provide job opportunities for others, for help of the others through zakat, infaq, and shodaqoh. In this way, the wealth not only rotates on the rich, bringing on gap in social life.The problem of wealth distribution is closely related to the welfare of society. Therefore, the state has a duty to regulate the distribution of income in order that the distribution can be fair and reaches appropriate target. The state could at least attempt it by optimizing the role of BAZ (Badan Amil Zakat) and LAZ (Lembaga Amil Zakat) which has all this time been slack. If BAZ and LAZ can be optimized, author believes that inequality and poverty over time will vanish. This is because the majority of Indonesia's population is Muslim.

Incomplete Organizations

2020 ◽  
pp. 199-232
Author(s):  
Henry Hansmann ◽  
Reinier Kraakman ◽  
Richard Squire
Keyword(s):  
The State ◽  
Commercial Law ◽  
Legal Entity ◽  
Business Corporation ◽  
Modern Business ◽  
The Republic ◽  
Business Entities ◽  
Insolvency Proceedings ◽  
Personal Assets ◽  
Asset Partitioning

This chapter analyzes ancient Rome’s law of business entities from the perspective of asset partitioning, the delimiting of creditor collection rights based on the distinction between business assets and personal assets. Asset partitioning, which is an essential legal attribute of modern business forms such as the partnership and the business corporation, reduces borrowing costs by simplifying credit-risk assessment and expediting insolvency proceedings. The chapter finds that ancient Roman business arrangements, such as the societas and the slave-run business endowed by the slaveowner with a peculium, did not give business creditors the first claim to business assets, making these forms of organization non-entities according to the criterion of asset partitioning. It appears that the only true legal entity used to form profit-seeking firms was the societas publicanorum, which roughly resembled the modern limited partnership. But use of that form was generally confined to firms that provided public services under contract with the state. Moreover, the societas publicanorum was essentially a creature of the Republic, and was largely abandoned during the Empire. Although Rome had a complex economy and sophisticated commercial law, and was familiar with most of the types of asset partitioning seen in modern legal systems, it ultimately failed to develop legal entities for general use in commerce. Apparent reasons include the Roman aristocracy’s disparagement of commerce, the emperors’ wariness of strong organizations outside the state, and the society’s continuing reliance on the family—a durable and complex legal entity in its own right—to handle many commercial needs.

The Neoliberal State

2005 ◽  
Author(s):  
David Harvey
Keyword(s):  
Property Rights ◽  
Free Trade ◽  
Common Property ◽  
Private Property ◽  
The State ◽  
Free Markets ◽  
Private Property Rights ◽  
Role Of The State ◽  
Contractual Obligations ◽  
Political Form

The role of the state in neoliberal theory is reasonably easy to define. The practice of neoliberalization has, however, evolved in such a way as to depart significantly from the template that theory provides. The somewhat chaotic evolution and uneven geographical development of state institutions, powers, and functions over the last thirty years suggests, furthermore, that the neoliberal state may be an unstable and contradictory political form. According to theory, the neoliberal state should favour strong individual private property rights, the rule of law, and the institutions of freely functioning markets and free trade. These are the institutional arrangements considered essential to guarantee individual freedoms. The legal framework is that of freely negotiated contractual obligations between juridical individuals in the marketplace. The sanctity of contracts and the individual right to freedom of action, expression, and choice must be protected. The state must therefore use its monopoly of the means of violence to preserve these freedoms at all costs. By extension, the freedom of businesses and corporations (legally regarded as individuals) to operate within this institutional framework of free markets and free trade is regarded as a fundamental good. Private enterprise and entrepreneurial initiative are seen as the keys to innovation and wealth creation. Intellectual property rights are protected (for example through patents) so as to encourage technological changes. Continuous increases in productivity should then deliver higher living standards to everyone. Under the assumption that ‘a rising tide lifts all boats’, or of ‘trickle down’, neoliberal theory holds that the elimination of poverty (both domestically and worldwide) can best be secured through free markets and free trade. Neoliberals are particularly assiduous in seeking the privatization of assets. The absence of clear private property rights––as in many developing countries––is seen as one of the greatest of all institutional barriers to economic development and the improvement of human welfare. Enclosure and the assignment of private property rights is considered the best way to protect against the socalled ‘tragedy of the commons’ (the tendency for individuals to irresponsibly super-exploit common property resources such as land and water).

scholarly journals Tropical Deforestation: Can Property Rights Stem the Tide?

SURG Journal ◽  
2016 ◽  
Vol 8 (2) ◽  
pp. 45-54
Author(s):  
Daniel Bayley
Keyword(s):  
Property Rights ◽  
Tropical Forests ◽  
Private Property ◽  
Free Market ◽  
Tropical Deforestation ◽  
Private Ownership ◽  
Private Property Rights ◽  
Effective Form ◽  
Tropical Forest Management ◽  
Market Environmentalism

In this report the property right structures surrounding tropical forest management are analyzed with a specific case study presented on tropical forests in Honduras. In order to adequately understand the set of property rights in place surrounding tropical forests, the applicable sets of property rights are laid out and explained (private, common, state, and open access). It is argued that the current property rights regimes in place surrounding tropical forests are inadequate and are the issue leading to high levels of deforestation. Conflicts and controversies surrounding the issue are presented for a counterargument and separate view of the issue. It was found that the current property rights regime in Honduras is inadequate for effective resource management as it lacks enforceability along with structure and is the prominent issue surrounding tropical deforestation. Private property rights were the most effective form of property rights found for maintaining natural resources, and it is therefore recommended that private ownership be instilled upon tropical forests to reduce the rate of deforestation. Free Market Environmentalism (FME) is offered as a solution to the current methodology for the management of tropical forests, as it advocates for private ownership and an enforceable set of rights. Therefore, it is recommended that a private property rights regime following the FME methodology replace existing state property rights in order to stem the tide of tropical deforestation.

scholarly journals Konsep Distribusi Pendapatan Dalam Islam

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Moh. Ah. Subhan ZA
Keyword(s):  
Property Rights ◽  
Social Life ◽  
Private Property ◽  
Wealth Distribution ◽  
The State ◽  
Private Property Rights ◽  
Job Opportunities ◽  
The Rich ◽  
The Difference ◽  
Distribution Of Income

The main problem of social life in the community is about how to make the allocation and distribution of income well. Inequality and poverty basically arise not because of the difference of anyone’s strength and weakness in getting livelihood, but because of inappropriate distribution mechanism. With the result that wealth treasure just turns on the rich wealthy, which is in turn, results in the rich get richer and the poor get poorer.Therefore, a discussion on distribution becomes main focus of theory of Islamic economics. Moreover, the discussion of the distribution is not only related to economic issues, but also social and political aspects. On the other side, the economic vision of Islam gives priority to the guarantee of the fulfillment of a better life. Islam emphasizes distributive justice and encloses, in its system, a program for the redistribution of wealth and prosperity, so that each individual is guaranteed with a respectable and friendly standard of living. Islam recognizes private property rights, but the private property rights must be properly distributed. The personal property is used for self and family livelihood, for investment of the working capital, so that it can provide job opportunities for others, for help of the others through zakat, infaq, and shodaqoh. In this way, the wealth not only rotates on the rich, bringing on gap in social life.The problem of wealth distribution is closely related to the welfare of society. Therefore, the state has a duty to regulate the distribution of income in order that the distribution can be fair and reaches appropriate target. The state could at least attempt it by optimizing the role of BAZ (Badan Amil Zakat) and LAZ (Lembaga Amil Zakat) which has all this time been slack. If BAZ and LAZ can be optimized, author believes that inequality and poverty over time will vanish. This is because the majority of Indonesia's population is Muslim. Keywords: distribution of income, State’ role, Islamic economics

scholarly journals China’s Challenge: Expanding the Market, Limiting the State

2016 ◽  
Vol 3 (1) ◽  
Author(s):  
James A. Dorn
Keyword(s):  
Property Rights ◽  
Chinese Communist Party ◽  
Private Property ◽  
State Ownership ◽  
The State ◽  
Economic Life ◽  
Free Markets ◽  
State Sector ◽  
Private Property Rights ◽  
General Secretary

AbstractChina has made significant progress since 1978 in expanding the market, but that progress is threatened by the failure to limit the state. The critical challenge facing the Chinese Communist Party (CCP) and its leadership is to widen the range of choices open to individuals by promoting what Milton Friedman, in his 1988 memorandum to General Secretary Zhao Ziyang, called “free private markets.” Free markets require well-defined private property rights protected by a just rule of law. China has a robust private sector and private property rights are now recognized by law, but the state sector and state ownership continue to play a strong role in directing economic life.

scholarly journals Theoretical and legal bases of protection of business entities from raiders in Ukraine

2020 ◽  
pp. 51-56
Author(s):  
N.S. Horobets ◽  
Ye.S. Pylypenko
Keyword(s):  
Property Rights ◽  
Private Property ◽  
Criminal Liability ◽  
The State ◽  
Small Enterprises ◽  
Legal Principles ◽  
Business Entities ◽  
State Registration ◽  
The Right ◽  
Common Understanding

The article is devoted to the study of theoretical and legal principles of protection of business entities from raids in Ukraine due to the low level of quality of the system of protection of private property rights in the state. It is stated that for small enterprises the lack of financial resources and the risk of illegal seizure or takeover, ie "raiding", is a more common problem, but large enterprises are also subject to raids. It was found that raiding is a real threat to the integrity of enterprises, stable economic development and information security of the state, its danger is confirmed by data on the number of raider seizures of property in Ukraine. It is noted that one of the areas of counteraction to raiding is the consolidation at the legislative level of a common understanding of this concept, but the Civil Code of Ukraine, the Law of Ukraine "On Joint Stock Companies" deals only with certain aspects of raiding. Features of "white", "gray", "black" raiding are revealed. There are two ways to warn and protect businesses from raiding: the use of government tools and self-preventive protection of the enterprise. The state instruments of warning and protection of enterprises from raids include: legislative guarantees of inviolability of property and protection of property rights of enterprises in case of violation, criminal liability for misappropriation of property, the procedure of state registration of property rights, the right to apply for protection of rights and interests to the court and the Office for Combating Raiding at the Ministry of Justice of Ukraine. It is emphasized that only 20% of enterprises independently protect themselves from raider encroachment, which explains the large number of raider seizures in Ukraine. Among the methods of such protection, emphasis is placed on creating a reliable system of protection of information about the company, ensuring timely and full payment of dividends to shareholders, preventing the mass purchase of shares and monitoring the current situation. It is concluded that it is expedient to develop and consolidate at the legislative level a common understanding of the concept of "raiding", guarantees of warning and protection of business entities from raiding in Ukraine, improving the powers of courts and the Office for Combating Raiding in Ukraine to consider issues of registration of property rights of enterprises.

Legal and Theoretical Foundations of the Business Corporation

2019 ◽  
pp. 3-84
Author(s):  
Carsten Gerner-Beuerle ◽  
Michael Schillig
Keyword(s):  
Limited Liability ◽  
Corporate Law ◽  
Company Law ◽  
Business Corporation ◽  
Legal Personality ◽  
Modern Business ◽  
Historic Development ◽  
The Subject ◽  
National Boundaries ◽  
Theoretical Foundations

In accordance with comparative law methodology, the chapter seeks to define and delineate in functional terms the subject matter of this book. It aims to provide a workable conception of ‘business corporation’ and ‘company law’ that transcends national boundaries. The modern business corporation (or company) is a comparatively recent phenomenon that emerged in the nineteenth and twentieth centuries. Its rise is linked with the development of the modern nation state and capitalism. Despite a growing interest in comparative company law scholarship, most lawyers still approach the subject with preconceptions formed by their own domestic corporate law experience. This can be problematic given that major differences in typology, historical development, regulatory framework, and legal characteristics remain. Consequently, this chapter discusses the concepts and terminology used in this context in common law and civil law systems, explores separate legal personality and limited liability as defining properties of the business corporation, provides an overview of the historic development of the business corporation and of corporate (law) theory, and analyses the sources of domestic corporate law.

Protected areas and property rights in Thailand

1998 ◽  
Vol 25 (3) ◽  
pp. 195-197 ◽  
Author(s):  
PHILIP DEARDEN ◽  
SURACHET CHETTAMART ◽  
DACHANEE EMPHANDU
Keyword(s):  
Property Rights ◽  
Protected Areas ◽  
Protected Area ◽  
Private Property ◽  
The State ◽  
Private Property Rights ◽  
Collective Property

Vandergeest (1996) suggested that the protected area (PA) system in Thailand is too large. He proposed that the state should recognize claims to private property rights within the PA system and subject remaining lands to collective property rights where villagers would be allowed to burn, cut and graze for commercial purposes. We disagree and summarize some of our concerns below.

scholarly journals KONSEP LIMITED LEABILITY SEBAGAI BADAN HUKUM KORPORASI

2011 ◽  
Vol 3 (1) ◽  
Author(s):  
Burhanuddin Susamto
Keyword(s):  
Islamic Law ◽  
Limited Liability ◽  
Corporate Law ◽  
Business Organization ◽  
Business Corporation ◽  
Modern Business ◽  
Islamic Identity ◽  
Muslim Communities ◽  
The Way

A strong awareness to reassert Islamic identity has emerged in these recent decades. One of the awareness is that the force of some muslim communities to internalize Islamic principles into all institutions. Nyazee, in his work, questions and also explains Islamic principles that must be the base of business organization particularly in corporation scope. The aim of this study is to show the argumentation of Islamize modern business corporation and to offer the way to realize the aim. Therefore, this study needs comprehensive and integrative way based on Islamic law towards liability limited concept as corporate law institution. Pada dekade belakangan ini telah muncul kesadaran yang kuat untuk menegaskan kembali identitas Islam. Salah satu wujudnya adalah desakan sebagian kaum Muslimin yang menghendaki agar semua institusi kehidupan disesuaikan dengan prinsipprinsip Islam. Nyazee sendiri dalam karyanya sangat mempertanyakan dan berusaha menjelaskan prinsip-prinsip Islam yang seharusnya menjadi dasar organisasi bisnis terutama dalam lingkup korporasi. Tujuan dari studi ini adalah untuk menunjukkan mengapa korporasi bisnis modern perlu di-Islamisasi, dan menawarkan bagaimana cara tersebut dapat terwujud. Karena itu untuk mencapai tujuan itu, studi ini membutuhkan upaya yang konprehensif dan terintegrasi menurut Hukum Islam terhadap konsep limited liability sebagai badan hukum korporasi.<br /><br />Kata Kunci: Korporasi, Limited Liability, Badan Hukum

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