AN INVESTIGATION INTO
SCIENCE AND CORPORATE LAW

Discoveries & Findings

“Value is a property of a capital that can be transferred to do socially useful work .”

On value?

“there may not be not an ounce of matter in value, but there is a pound of force.”
“the notion of value in economics, interest in corporate law and energy in science are all expressions of the same thing.”
“Value is a quantitative property of a capital that is transferred to perform work or bring about change.”

Anything that stores or accumulates socially useful energy for later use is a “capital”. The capitals include; social capital, natural capital, human capital, intellectual capital and financial capital.

“Social, intellectual, financial and all other forms of capital are stores of value or “interest” in corporate law”
“The universal measure of equivalence between all capitals is not money - it is the amount of socially useful energy concentrated in each form of capital.”

ON value creation?

Value is created or destroyed when one store of value or capital is transformed into another. The science of value creation is called “capital dynamics”.

“All capitals contain a certain amount of value, which varies according to their properties and characteristics (exhaustability, fungability, transferability, convertability etc).
“Value or capital dynamics is the emergent study of energy in its social form – value. The field examines the relationship between value, work, the forms of capital in which value accumulates, the concentration of value in each form of capital, the entropic and other qualities of each form of capital and the conversion of value between different forms.”
“Capital dynamics logically explains why the planet is in a period of decline, how to reverse the process and how to recapitalise”.
“value is created or destroyed when value gradients collapse”

ON Corporations?

Based on my definition of value, corporations can be conceived of as a type of energy structure governed by the laws on non equilibrium thermodynamics.

“if value is energy in its social form, the modern corporations is the peak prime mover - an incorporeal engine.”
“In a thermodynamic sense, incorporation is disequilibrium. The legal concept of limited liability is another way of saying that corporation is a low entropy open system that is not in equilibrium with its surroundings. And like other low entropy open systems, corporations avoid equilibrium (the legal idea of deregistration) by sourcing energy from their surroundings (stakeholders) and storing energy in their capitals for the future.”
“Prima facie, to act in the best interest of a corporation is to discharge a duty or exercise a power in such a way that the value (socially useful energy) available to the corporation increases rather than decreases over time.”

On the purpose of corporate law?

The purpose of corporate law is to empower and enliven by providing the framework for the existence an artificial (but ontologically real) entity capable of transforming and dissipating socially useful energy through out society.

“The purpose of a corporation is to be a corporation.”
“The history of capitalism is thus the history of how society has discovered new capital sources and developed new ways to transform all forms of capital to create more potential for positive change, or in the language of business - value.”
“Law and science promotes the corporation to its place among the stars. Both energy structures that dissipate energy that powers life.”
“Capitalisation is to a corporation what fusion is to our sun, photosynthesis is to plants and metabolism is to humanity. All can be considered dissipative open systems, governed by the laws of non-equilibrium thermodynamics, that rely on flows of energy to exist and grow. The twist in this story is that like the sun and plants, corporations also serve a social purpose despite having no conscience or awareness of duty or responsibility. Serving humanity obliquely by transferring and transforming energy and passing it on to society in more socially useful forms. The unintended and largely unrealised genius of the modern corporation is social purpose without social responsibility.”

On Directorship?

Directorship is the practice of value creation in the boardroom. It is the fourth organizational discipline alongside leadership, management, and assurance (corporate governance).

“Directorship is to value creation what corporate governance is value protection encapsulated in the DLMA Matrix.”
Directorship noun the act of value creation by a company director. Encompassing a company director's acumen in decision making, ability to guide and inspire those to whom power is delegated, willingness to assist when required and desire to learn and improve.