Judicial dissolution

Judicial dissolution, sometimes called the corporate death penalty, is a legal procedure in which a corporation is forced to dissolve or cease to exist. In the United States, it is rarely used.^[1]

Companies suggested as deserving the corporate death penalty include Eli Lilly & Company, Equifax, Unocal Corporation, and Wells Fargo.^{[2][3][4][5][6]} "If Volkswagen or other examples in this volume were forced out of existence, this would send a message," John Hulpke wrote in the Journal of Management Inquiry in 2017.^[7]

One argument against its use is that otherwise innocent employees and shareholders will lose money or their jobs. But author David Dayen argues in The New Republic that "the risk of a corporate death penalty should inspire active governance practices to protect their investments."^[8]

Historical Examples

In 1890, New York's highest court revoked the charter of the North River Sugar Refining Corporation on the grounds that it was abusing its powers as a monopoly.^[9]

See also

• Corporate crime
• Capital punishment

References