"There are only two ways yet known of protecting investors. One is flatly to prohibit certain kinds of corporate activity, trusting that you will catch in your net of prohibitions the dodges through which investors' savings are usually lost or dissipated. That is not a good way; because the business processes of today are complex; conditions change overnight; honest corporate managements not only want but thrive under a wide freedom of action. The other method is to give your corporation pretty wide latitude in what it does, within reasonable limits; and then make your directors and officers personally liable for any abuse of the machinery. In substance, you say to people, 'Take all the power you want; but you, individually, are responsible for the use of power.'"
Curated by Dr. Kenneth Durr and Robert K.D. Colby, History Associates, Inc.
Made possible through the generous support of the Center for Audit Quality, honoring Robert J. Kueppers for his significant contributions to the public company auditing profession and for his leadership and dedication to the mission of the Center for Audit Quality.
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