Liberals and even some conservatives seem to think corporations would take over and rule everybody if government ceased to exist. My question, is, would corporations be able to exist without government?
Are there laws and regulations that create corporations that would otherwise be impossible in a free market?
I think this thread is a good discussion on the topic
http://mises.org/Community/forums/t/10084.aspx
Yes, corporations would exist without government. They would not be the same as they are today however. In a truely free market where individuals are responsible for damage to persons or property, a corporation may exist in some form as partnerships do now, but would provide no protection from liability. A corporation would be just a club of people contracted with a group of executives to provide labor services. These individuals would be as responsible for damage to persons or property in accordance of the the contracts they enter into with the executives.
Yes, corporations provide equity investors with protection from liability. An equity investor is only liable for their investment and no more. WIthout this protection from liability an investor would be liable for their portion of the claim against them. It is currenly even worse as corporation in many ways are treated as human beings that have rights to privacy and free speech.
Getting rid of the corporation as we understand it would be very good for society. Of course to avoid chaos the entire tort system that assigns liability would have to be re-done as well, in other words would be privatized.