Not really, it's just that rich people are mostly above the law most of the time
Companies and the concept of limited liability exists to make innovation possible. No one will start a startup knowing they will have their house confiscated and go to prison if it fails. And, because majority of money businessmen make is the stock worth, company being insolvent and thus it's stock losing all value is in itself a punishment heavy enough for the founders.
What does that have to do with anything? We're not discussing a case of VW making bad business decisions and losing money.
If you start a company and break the law and harm people, you should have your house confiscated and/or go to prison. If you can't take this responsibility, just don't start the startup, that's perfect.
You are creating confusion about the subject being discussed in order to defend criminals.
"You see, I didn't steal your money, the company I ran stole your money, but that's actually on you because you didn't read the fine print I put in the contract you signed. And don't worry, justice was served, the company got punished and is now insolvent. Now watch this drive *swings golf club*"
This is a great example. Why is this emissions fakery illegal? Ultimately it’s because pollution kills people. Are these people going to prison for killing people? Not exactly. They’re going to prison for killing too many people. If they had stayed within the limits, they’d still be killing people, just not as many, and it would be 100% legal.
Stab a person in the lungs, go to jail. Kill people by putting toxins into their lungs, well, just stay under this limit.
Walk out the door with a $10 item you didn’t pay for, crime. Fail to pay your worker $1,000 that they earned, that’s a civil matter. Worst case you’ll have to pay a penalty.
Polluting is not a "rich person" crime. It's very much something normal/poor people do a lot, too. It's common for individuals to burn leaves. It's less common, but also an active problem, for them to burn piles of trash (including plastic, tires, etc.)
As an individual, I'm allowed to do a certain amount of pollution (some because it's legal, some because it's unenforced), and will get fined if I do too much, same as the corporation.
Large polluters don’t have that excuse. I recall that diesel hate alone resulted in dozens or hundreds of excess deaths. How many people do compliant cars kill? How many does a coal power plant kill? And all 100% legal.
Edward, Lord Thurlow c.1850
This isn’t how it works.
A corporation can do pretty much anything. Steal, lie, poison communities, give people HIV. Anything.
No, it isn’t. Limited liability does not shield executives from criminal prosecution. If an LLC defrauds another party, the perpetrators are both criminally and civilly liable; this is true in every common law country you can think of. Limited liability corporations enjoy a limitation of civil liability (i.e. the shareholders cannot be held liable for more than the company is worth). This limitation is not exhaustive in the case of fraud or criminal negligence. In practice it is of course possible that people “get away with” both, but that is a failing of law enforcement, not limited liability itself.