http://www.corpwatch.org/issues/PID.jsp?articleid=1810

The Death Penalty for Corporations Comes of Age

By Russell Mokhiber
Business Ethics
November 1, 1998

In two surprising recent cases, a law school professor and a circuit court 
judge seek to revoke the charters of corporate lawbreakers.

We know what the death penalty for individuals means: Commit an egregious 
crime, die at the hands of the state. What does it mean to talk about the 
''death penalty'' for corporations?
More Inc..."On September 10, he and a coalition of more than 30 public 
interest organizations filed a petition calling on the attorney general (AG) 
of California to revoke the charter of Union Oil of California (Unocal). In 
social responsibility circles, Unocal is best (or perhaps worst) known for 
its controversial Burma pipeline, being built by a consortium co-owned in 
part by Unocal and the outlaw military regime there. For construction of the 
pipeline, the Burmese regime has reportedly seized land, forcibly relocated 
villages, and used unpaid labor -- even of children and the elderly. 
Benson's petition cites many other outrages as well -- including 
''unspeakable'' human rights violations in Unocal's dealings with the 
Taliban militia in Afghanistan, which is known for its extreme cruelty in 
treatment of women; plus responsibility for the 1969 oil blowout in the 
Santa Barbara Channel; in addition to hundreds of other environmental and 
employee-safety violations. Noting that California routinely puts out of 
business hundreds of unruly accountants, lawyers, and doctors every year, 
the coalition called upon California Attorney General Dan Lungren (who is 
running for Governor) to revoke Unocal's charter.

''We're letting the people of California in on a well-kept secret,'' said 
Benson. ''The people mistakenly assume that we have to try to control these 
giant corporate repeat offenders one toxic spill at a time, one layoff at a 
time, one human rights violation at a time. But the law has always allowed 
the attorney general to go to court to simply dissolve a corporation for 
wrongdoing and sell its assets to others who will operate in the public 
interest.''

In California, this power of charter revocation has apparently been invoked 
only once this century -- in 1976, when a conservative Republican AG asked a 
court to dissolve a private water company for allegedly delivering impure 
water to its customers..."And...the AG sought to revoke the charters of two 
corporations that put out allegedly deceptive ''scientific'' research for 
the tobacco industry.







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