On partnerships of limited liability

Abstract

The unlimited liability existing under the English law prevents a prudent man from connecting himself as a partner with any business to which he cannot give his personal attention. This operates as a restriction on the employment of capital, and it has been suggested that it would be of advantage to the community to adopt the system of partnerships of limited liability practised in other countries. The fact that such partnerships are recognised by the laws of all or almost all the civilised nations of the world, except England, that they are used extensively, and that the system is everywhere liked and considered to work well, affords a strong presumption in their favour, and makes it incumbent on those who oppose the introduction of such partnerships into these countries to support their opposition by strong arguments.