‘Limited Liability and the Efficient Allocation of Resources: Twenty-Five Years Later’

“In Limited Liability and the Efficient Allocation of Resources, 89 Northwestern University Law Review 140 (1994), I responded to a chorus of scholars who suggested that limited liability for corporations had outlived its usefulness – a thesis that was based in large part on the mistaken assumption that limited liability was meant to subsidize entrepreneurship. I also responded to the critics of the critics who offered overly ornate justifications for limited liability, such as the need (in its absence) for investors to monitor management and other investors …” (more)

[Richard Booth, NULR of note, 17 February]

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