Rubber Bands v. Rocks: Metaphors Regarding Corporate Control

My reaction: is an LLC governed by rocks made from bands?

Grading exams is a notoriously tedious exercise, enlivened by the occasional sentence that makes you perk up.  Here’s one from my latest corporation exam:

“A firm of 100 shareholders is controlled like a boat being pulled by rubber bands — it’s not direct, it’s not exact, no one person is really in control.  A firm of 10,000 shareholders is more like a boat being controlled by people hitting it with rocks.”

It’s a striking image – leveraged to explain and justify current veil piercing doctrine. Lamentably, most of the other fun  comments I read appeared to be accidental malapropisms.   It’s tough to write something genuinely interesting and/or fresh on an exam.  So I thought I’d use it to introduce a comment thread for other examples from your exams.

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2 Responses

  1. A.J. Sutter says:

    Just wondering, how’d you grade the exam? Did the student entertain the issue of how the shareholding is distributed (e.g. 1 shareholder with 60% of the shares, and the other 99 or 9,999 with the balance)?

  2. Dave Hoffman says:

    Well, I don’t recall the student’s exact answer — just wrote down the line — but the question asked generally about how they would reform VP doctrine.