Talk:Limited liability

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First 'modern' law introducing limited liability?

French (1990) explains that the introduction of limited liability to the United Kingdom was effected by an Act of the independent Irish Parliament, the Irish Anonymous Investors Act of 1782, predating the NY 1811 Act by near 30 years.

Kingston (2020, p.xx) explains that "The Irish Anonymous Investors Act of 1782 appears to have been directed towards the facilitation of what we would today call start-up or venture capital for new projects. This is because any partnership taking advantage of it was to be ‘for any term not exceeding fourteen years’ (French 1990). The next law providing for general limited liability was that of New York State in 1811, and in this case the duration was limited to twenty years."

The Act in question is on the open shelves in Trinity College Library. It is titled 21 & 22 of George III. The relevant text goes: 'Whereas the increasing the stock of money employed in trade and manufacture, must greatly promote the commerce and prosperity of this kingdom and many persons might be induced to subscribe sums of money to men well qualified for trade, but not of competent fortune to carry it on, largely if they were allowed to abide by the profit or loss of trade for the same, and were not to be deemed traders on that account, or subject thereby to any further or other demands than the sums so subscribed.'

REFS:

French, E. A. (1990), 'The Origin of General Limited Liability in the United Kingdom'. Accounting and Business Research 21, 15–34.

Kingston (2020) 'How Capitalism Destroyed Itself', Oxford: Peter Lang, ISBN 978-1-78997-808-7 92.39.186.135 (talk) 15:47, 25 May 2023 (UTC)

Organization

limited liability organization 180.194.193.238 (talk) 11:31, 3 October 2023 (UTC)

Intro of the article.

The current introduction -- “Limited liability is a legal status in which a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a corporation, company, or joint venture” -- feels difficult to decode, especially for general readers. It might help if the article included a clearer explanation, such as: “Limited liability means that an owner or shareholder can only lose the money they invested in the business, and they are not personally responsible for the company’s debts beyond that amount.” Adding context about why limited liability exists, how it protects personal assets, and why it’s important in business law could make the introduction easier to understand and more informative.

-- Slavuska Shabliy Slavuska Shabliy (talk) 23:09, 4 July 2025 (UTC)