The Corporate Autonomy Act

Section 1: Purpose and Findings

The purpose of this Act is to prohibit corporate slavery, defined as the ownership of one corporation by another through the purchase of shares, mergers, or takeovers. This Act aims to foster a fair and competitive marketplace that allows corporations to operate independently. The findings of Congress include:

1. Corporate consolidation can stifle competition and innovation, harming consumers and employees.
2. Independence is vital for the growth and sustainability of smaller companies in the marketplace.
3. A diverse corporate landscape promotes economic resilience and consumer choice.

Section 2: Definitions

For the purposes of this Act:

1. “Corporate slavery” refers to a public corporation purchasing another corporation, including acquiring 51% or more of its shares, mergers, or takeovers.
2. “Public corporation” refers to a corporation whose shares are traded on public stock exchanges.
3. “Acquired corporation” refers to any corporation that has been purchased, merged with, or taken over by another corporation.

Section 3: Prohibition of Corporate Ownership

1. Corporate slavery is hereby outlawed. Public corporations are prohibited from purchasing, merging with, or taking over other corporations.
2. Any public corporation currently owning other corporations must divest from those entities within 12 months of this Act’s enactment.

Section 4: Management of Divested Corporations

1. Upon divestiture, a new board of directors, including a new CEO, shall be appointed by the state court in which the acquired corporation is headquartered.
2. This interim board shall serve until a new board can be elected by the shareholders of the acquired corporation.
3. No new board members shall be eligible for election if they have any direct or indirect connection to the corporation currently owning the acquired corporation.

Section 5: Status of Acquired Corporations

1. No public corporation currently owned by another corporation may transition to a private corporation during its existence, regardless of the name or entity under which it operates.
2. Any attempts to evade this prohibition through restructuring or renaming will be subject to legal scrutiny and enforcement actions.

Section 6: Enforcement and Compliance

1. The Securities and Exchange Commission (SEC) shall oversee compliance with this Act.
2. Public corporations found in violation of this Act shall face substantial fines and may be subject to additional regulatory actions.

Section 7: Severability

If any provision of this Act is found to be unconstitutional or otherwise invalid, the remaining provisions shall remain in effect.

Section 8: Effective Date

This Act shall take effect immediately upon enactment.

This proposed Act seeks to eliminate corporate slavery, ensuring that corporations operate independently and contribute to a diverse and competitive economic landscape.