> With ownership, the government also then has the ability to 'peer behind the veil' more easily and make sure management is behaving

You want every politician you don’t like in the country having this power?

> if a company continues to misbehave the government over time takes ownership and can then replace the board

This is expropriation. (It’s also fines with extra steps and ongoing costs.)

> think a corporate equiv to a death penalty

Corporate death penalties are fines with extra steps. They’re a red herring to avoid what companies actually fear, massive fines that force them into liquidation. Anything you want with a corporate death penalty, massive fines achieve more cleanly. The only function bringing the former up has is to distract from the latter.