What Injures a Corporation? Toward Better Understanding Corporate Personality
25 Pages Posted: 11 Feb 2018 Last revised: 16 Feb 2018
Date Written: February 14, 2018
Understanding what injures a corporation can help us better understand corporate personality. Traditional corporate injury is almost always injury to corporate assets or profits. This makes sense, since without counting impairment to corporate assets and profits as corporate injury most of what we think of as "essential" about a corporation - locking assets into a protected partition - would be impossible: (1) protecting the going concern value of a corporation; (2) maintaining creditor priority; and (3) contracting through the corporate form. More recent expansions of corporate injury, including expansions of corporate rights to political speech (Citizens United) and religious freedom (Hobby Lobby) seem at first to fit poorly with existing corporate theory. But corporations can "lock in" and "partition" more than just assets; they can partition beliefs and virtues as well. Viewed this way, existing corporate theory (and the idea of corporate injury as harm to what is partitioned by the corporate form) may provide more help in understanding corporate Constitutional rights than previously recognized.
Keywords: Injury, Standing, Corporate Law, Corporate Litigation, Citizens United, Hobby Lobby, Corporate Personality
JEL Classification: G34, G38, K22, K41
Suggested Citation: Suggested Citation