The source sees the strongest case for limited liability in public joint-stock companies with many dispersed shareholders. Ordinary shareholders cannot realistically know or control every daily business decision.
Holding each public shareholder personally liable for debts beyond company assets is therefore different from holding an active managing partner responsible.
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Limited Liability: Inheritance Under Debt, Historical Analogy and Practical Limits
The source sees the strongest case for limited liability in public joint-stock companies with many dispersed shareholders. Ordinary shareholders cannot realistically know or control every daily business decision.
Holding each public shareholder personally liable for debts beyond company assets is therefore different from holding an active managing partner responsible.