MegaWarp has an article about how the recent event with the BoB alliance showed that EVE-Online's corporation system is flawed and prone to abuse.
"BoB (Band of Brothers) was a prominent and seemingly invincible alliance (group of co-operating corporations, think big guilds) in EVE-Online. Active since the early days. Their main goal was to control all of EVE's territories.
However, in February 2009 they were suddenly disbanded which caused uproar and major change in the eco-political landscape. The BoB disbandment was similarly player created and driven.
If you are not an EVE-Online player, it's still interesting to examine this historical chapter. We'll inspect what has transpired and cause, while keeping it simple so everybody can comprehend it."