A business prohibition is a prohibition issued by a court that prohibits an individual from holding a position of responsibility in a corporation. Business prohibitions are given as punishments and as preemptive measures following aggravated offences while in office, such as false accounting, or gross neglect of duties. The objective is to ascertain public trust in corporations: if the offender's actions are liable to damage the trust of debtors, partners or other parties of contracts, a business prohibition is issued.
An individual with a business prohibition may not found or run any sort of a corporation, be in a corporate executive board, be employed as a CEO or even use one's powers as a stock owner, even by proxy. If a proxy agrees to circumvent the prohibition, he may be convicted as an accessory to a crime.
Famous quotes containing the words prohibition and/or business:
“No political party can ever make prohibition effective. A political party implies an adverse, an opposing, political party. To enforce criminal statutes implies substantial unanimity in the community. This is the result of the jury system. Hence the futility of party prohibition.”
—Rutherford Birchard Hayes (1822–1893)
“I have always had something to live besides a personal life. And I suspected very early that to live merely in an experience of, in an expression of, in a positive delight in the human cliches could be no business of mine.”
—Margaret Anderson (1886–1973)