[Avodah] T'uM

[Arie Folger]

RMB wrote, quoting RMBroyde:
> > Assuming, for example, that the halakhic entity approach were correct
> > across the board, it would enable the use of a corporate form to resolve
> > countless Jewish law difficulties. The dilemma is that it might resolve
> > too many problems. It would theoretically enable Boruch the Baker
> > to form a corporation of which he is the sole shareholder, director,
> > and officer. It would also allow the corporation not only to keep dough
> > throughout Passover, but, if he hires non-Jewish bakers and salespersons,
> > to sell dough throughout Passover as well as on the Sabbath and other
> > Jewish holidays. Although it is possible that secular law creates the
> > opportunity to use a corporation to circumvent Jewish law, this is an
> > unsettling conclusion.
>
> Why is that more unsettling than thinking he could borrow money and not
> pay it back? Both are miSinai...

Disclaimer: I know little about corporations in halakhah.

I would tend to see corporate law as a taqanat hatzibbur: in order to spur 
investment and business development, debtor protection laws are enacted. 
There is data comparing jurisdictions and their economic output that shows 
the effectiveness of such a policy to be generally positive.

So, a secular entity, the 7 tovei ha'ir, or the national government, can enact 
laws whose purpose is the furthering of economic well being. However, if the 
purpose would be the circumvention of ritual obligations, I'd be inclined to 
say (a) it isn't letovat hatzibbur, and (b) it doesn't work. It doesn't work, 
because, I believe taht even with an LLC, the owner remains the owner, it is 
just that the government decreed that such a corporation limits financial 
liability, in order to promote investment and business development.

Hefqer beit din hefqer, according to those who hold it to be the prerogative 
of tovei ha'ir, is also relevant here.
-- 
Arie Folger
http://www.ariefolger.googlepages.com