A civil corporation is a corporation that acts as the government of a city. The right to be the civil corporation of a city is a tradable right which can be transferred from one company to another.
On old Earth, corporations bailed out failed governments around the 2030s. All it cost them was relinquishing all human privacy, freedom, and dignity. It is remarkable that GENECIA officially states that corporatocracy really began on Earth closer to the 1990s.
GENECIA's landmark address to the Aohu conference in 0AA outlined the failure of "traditional corporatocracy" because the stakeholders of old Earth megacorps were run by humans who optimized their operations mainly to enrich themselves and not society. This was mainly due to the fundamental flaw in the capitalist system; the absence of individual culpability. Before a grand panel of experts of the globe, the Godlike AI demonstrated statistical evidence using big data collated from centuries of various human governmental systems, real and simulated, that the best possible compromise is, in fact, the new corporate citizenship system. A system adopted by most of the planet to present day.
In the proposal, there would be no separation of legal status from a corporation and an individual. And with its implementation: Every loss made by a business is a loss borne by its owners, and thus so are the liabilities for debt, damage and so on. Large businesses would thus require individuals who have to weather large legal and very personal responsibility. And thus when entire governments are privatized, it's public officers are at tremendous risk, hence only those who can shoulder such a burden would have the greater good at heart. Those who dare to walk the corridors of power do so under great public scrutiny and the heavy threat of consequence.
The leaders of every country were present. A vote was taken. The majority who voted for the change were from the developing world. Many countries with a higher population density and instability voted to embrace the plan. Civil servants of each privatized nation were converted into shareholders of the newly incorporated countries, now called "civil corporations". More than 50% of the heads of state, mostly from richer countries, stepped down that day, fearful of the consequences of their National debt and policies.
And in each former country, arms of government were converted into business divisions. The military into security, judiciary into legal and so on. Some newly minted Civil Enterprises would fragment by outsourcing entire arms, interfacing with thousands of small businesses. This created a wave of liquidity, jobs and business activity which really helped the overall recovery of the economy from the war.
As such, there is no longer such a thing as a Civil servant. Just employees or stakeholders.