But on what basis?

We can probably both agree it's difficult or impossible to construct an ethical basis for the unilateral preference of the group over the individual, an easy counterexample is queer rights. So we can't just make whatever rules we think best benefit society: there are ethical limits, and many demographics in the world who still seek liberation from State oppression.

Therefore, any encroachment on the rights of the individual over the rights of the group must be justified. A monopoly on violence is not justification. I am not saying your suggestion is flat-out unethical. But I seek to understand the basis on which you're claiming we as a community have the right to prevent someone from retaining control of their company. I could see one trying to make the case that if the owner commits a serious and relevant crime it might be best to prevent him from doing further harm, but you seem to be suggesting some arbitrary threshold after which a person is not allowed to retain control of their company.

On the basis that public corporations are exclusively a legal construct which can, and indeed already do, have arbitrary rules. Should the individual wish to maintain control over their company they can simply keep it private indefinitely.

On the basis that they are not entitled to limited liability. It’s an enormous grant from the public. We have every right to add conditions.