And yet it can still be argued that in some cases the original purpose of the company – which was the aggregation of capital for a worthwhile cause – still makes sense. But it contrasts heavily with the fact that the vast majority of companies have almost no capital at all now.
It’s not about capital. The limited liability company allows large scale economic organisations. Without the limit to liability it is not possible for the individual to diversify, nor for an organisation to agglomerate such diversification.
Forget the capital part and think of participation. How can you have 10,000 people each part owning something without that limited liability?