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Corporate law, deterrence & justice

Could a 'Corporate Death Penalty' Prevent Businesses from Violating the Law?

LNAT Section B · Founder's essay plan

The essay question

Implementing a 'Corporate Death Penalty' could prevent businesses from violating the law. Agree or disagree?

The plan

Aryan kept two drafts. Plan 1 answers "Should it exist?" (justice/legitimacy). The revised plan re-angles every point around the precise question — would it prevent violations? (deterrence). Both are preserved.

Definitions

  • Corporate Death Penalty (CDP): Forced dissolution/liquidation (or licence revocation) of a corporation by state authority as punishment for egregious or repeated illegality.
  • Prevent violations: The deterrent or behaviour-shaping effect — whether the threat of CDP changes corporate behaviour to reduce future offences.
  • Businesses: Artificial legal persons created by incorporation; shield shareholders from liability but owe duties under company and criminal law.

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PLAN 1 — Disagree (abolishing corporations outright is disproportionate and counterproductive)

  • Jurisdiction focus: UK/US with comparative EU regulation. Word target: 750.

Assumptions under challenge (Plan 1)

  1. That CDP is practically possible — states could dissolve complex multinationals without catastrophic collateral harm.
  2. That CDP is morally legitimate — destroying a legal person is proportionate, like capital punishment for individuals.
  3. That CDP uniquely deters misconduct, rather than existing sanctions already sufficing.

Point 1 — Disproportionate and collateral harm

Distinctness: fairness/proportionality before deterrence.

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