Why are employees still owned by their companies and their rules when they're not working?

Because they are paying you. In exchange for that, you have to follow their rules. If you find it that unbearable, quit.

thats because you still "represent" said company outside of working hours so if you do stupid things to make the company look bad in anyway you will get terminated.

i had a coworker who called the cops about a fake bomb threat ( we worked for a company that hosts big events like music events and what not ) our boss found out and told the guy to resign before he fires him to save him face because it doesn't look good on your resume when you get fired if you resign you basically left the company . we already had cops and security at the event as well since it was mandatory to have cops at events like this dealing with large amounts of people as well as alcohol.

In a way, you are stilled owned by them, because if you go on social media and write
something they don't like, or that's politically incorrect, then they can fire you over it.

I work for an employee owned company so not all companies are own their employees.
When you're not working, you're on your own time. You shouldn't have to follow their policies / rules when you're not at work. Some times what you do out side of work can reflect badly on the company, for example if you like to rant or post inflammatory things on social media, or take part in events that your boss may not agree with.

You're not bound by their company rules. You can quit any time you want. Why do you have the entitlement mentality to dictate what their policies are? If you're a teacher you can't be the starring attraction at the stripper show downtown.

It's not all about you. If you don't like the policies, quit.

Sounds like you need a new employer.  I've never worked for a single employer where I was bound by their rules outside of work.  What are these rules exactly??

I smell the bums

If they are, then the company is responsible for all expenses even when not working.