> dissolution of the corporation

Corporations are a legal fiction. What does dissolving the corporation mean? Revoking its charter? Then what happens to its assets? If you return them to shareholders, you’ve given a boon to its wealthiest, who can now re-organise it free of prior liabilities. If you liquidate them, you’ve delivered a junior fine, since with real fines the fine gets paid before creditors. If you take it, you’ve expropriated (also, fines with extra steps).

In every case, what you want from a “corporate death penalty” is better effected with actual penalties. A market-cap sized fine is more specific and more actionable than a “corporate death penalty,” which is why I suspect the latter is in circulation.