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?

13 thoughts on “Nope”

  1. the vast majority of companies have almost no capital at all now.

    As they say, citation needed..

  2. Apologies if I’ve missed someone else pointing this out, but I see Ritchie has the begging bowl out, asking for donations now on the TRUK sidebar. A man that pulls (well pulled in) £70 grand a year, has no mortgage, spends nothing, needs more? Who’s the arse accumlating the filthy lucre now?

  3. @bravefart, that’s not blank verse but an inept attempt by Spudhead to emulate the tribrachic foot of William Carlos Williams

    I have eaten
    the plums
    that were in
    the icebox

    and which
    you were probably
    saving
    for breakfast

    Forgive me
    they were delicious
    so sweet
    and so cold

  4. Dennis, CPA to the Gods

    But it contrasts heavily with the fact that the vast majority of companies have almost no capital at all now.

    That kind of depends on what sort of companies you are talking about. C corporations that are publicly traded will certainly have capital. Privately held personal service corporations and S corporations very often will not. Why? Different businesses, different missions, differing modes of operation, different capital requirements.

    My PSC has no assets other than cash and receivables. All other assets – computers, printers, etc. – are in an S corporation that leases those assets to the PSC. Why? It’s tax advantaged.

    I have set up several of my clients in high-risk industries (roofing, tree cutting) as S corporations. All of their assets are in a second S corporation that leases to the first. Tax advantaged? Not really… but if a worker dude falls off a roof or out of a tree and sues the corporation, they won’t be able to get the vehicles and heavy equipment sitting in the second S corporation as the result of that lawsuit.

    Different businesses, different missions, differing modes of operation, different capital requirements.

  5. the vast majority of companies have almost no capital at all now.

    The man is a moron.
    Try starting a mobile phone company. I think you will find you need several billion in capital to build it, before you can start selling any service.

    Or you could grow wheat. A few thousand acres of prime agricultural land, seed, combine harvesters, etc.

    What el spuddo means is you need no capital to spout incoherent nonsense on economics. Nowt new there then.

  6. the original purpose of the company – which was the aggregation of capital for a worthwhile cause

    I wonder if anyone has previously claimed this. His ability to toss off shite based on his own misunderstanding and limited knowledge and present it as recognised fact is remarkable.

  7. Bloke in North Dorset

    He still hasn’t grasped what a limited liability company is all about. In the past he seemed to imply it was about limited liability for managers and got a bit of a monstering on here, and still didn’t learn.

    Does he ever do any research at all?

  8. Innocent question: If he has such a down on limited liability why did he enter a limited liability partnership?

  9. The LLP enables Ritchie to obtain grants from charitable trusts that are not available to individuals e.g. the Friends Provident Foundation.

    Plus if he is sued for libel his liability is limited to the LLP assets and not his house or other assets held outside the LLP.

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