The Cato Institute has submitted an amicus brief in the Hobby Lobby and Conestoga cases, which test the extent to which the Religious Freedom Restoration Act (RFRA) and the First Amendment restrain the federal government from requiring employers to participate in employee benefit arrangements that violate the conscience of the individuals who own and run the company. More on the other amicus briefs from Rick Garnett at PrawfsBlawg and commenters. Prof. Bainbridge takes issue with a brief signed by a group of law professors on whether a corporate enterprise can be treated as an alter ego for its owners for purposes of imputing to it their rights (“reverse veil piercing”), and has some further thoughts on the legal principle — sometimes ideologically contested, but seldom in a consistent way — of corporate personhood. Related earlier here.
Gender governance quotas [Darren Rosenblum, Prawfs]
On a practical level, corporate and organizational “personhood” has worked coherently for more than a century. Will this? [Reuters, Science; earlier on corporate personhood ("established and relatively uncontroversial," and progressive in its legal implications)] A Twitter reaction: “If they get the right to air political ads they can only improve the discourse.” [@jacobgrier]
More seriously, Prof. Bainbridge provided an answer to the question both on Twitter (“We treat corporations as people because it is a useful fiction. Animals as persons is not useful.”) and then in a longer blog post, which concludes:
The problem, I believe, is that attempts to define the debate in moral or philosophical terms ignores the basic fact that the rationale for corporate personhood sounds in neither. Instead, it is based on practicality and utility. Put another way, we treat the corporation as a legal person because doing so has proven to be a highly efficient way for real people to organize their business activities and to vindicate their rights. Put yet another way, we treat the corporation as a legal person because it is a nexus of contracts between real persons. Which is something no animal can ever be.
Marc Hodak: “The golden parachute became popular after passage of the Williams Act [of 1968, which insulated managements against "hostile" takeover offers] because the Act effectively gave CEOs a veto over the acquisition of their firm. … Note that this ‘rent extraction,’ as it’s termed by economists, was not the result of managerial power granted by a lazy or corrupt board to a greedy CEO. This was managerial power created by law.”
Law professor Kaimipono David Wenger, who’s ordinarily found on the opposite side of issues from us, explains why “Corporations aren’t people!” is a vacant slogan and when rightly understood not even a progressive one. [Concurring Opinions]