Show WHAT LIMITED A subscriber asks for an explanation 0 the word limited wl icci frequent ly follows alie name of a con oration as the bannse blacking company limited or amith jones limited in tin last case as in the arst the con cern is a corporation with ers not one of whom possibly is a on jones I 1 he old principle of corporations created by act was that the entire property ot every ei was liable for the whole debts ot the company as the whole property 0 every member ot t general partnership is still anble for the debts of alic airm hut this system made every share holder responsible management of which he might not be guilty and deterred wealthy anen from becoming interested in the shares of coia orations lo 10 remove this objection the inn tiple of limited liabilities was introduced and in order to notify the public th it only the sipai tte tie cor w da liable for the debts ot the corporation alie I 1 anglish law requires tl at the woid limited shall be used in every case by the company most irions are con on tl e of limited in ability but few if my of alie baates en join companies com pinies to ai tie word limited to their corporate titles lie nutter is so well understood in this country indeed that it is not necessary essaiy ahe noteworthy exception to the general rule is the case of the na dional banks and even m this liability is limited to an amount equal to alie p ir value 0 the shares 1 hat is if the national bank fails each stock holder may not only lose whit 1 e has but more for each share of stock be holds if so much is feces sary to pay tl e debts of the bank until A few airs all the acot tish banks were organized with cited liability and when eight or ten bears ago a glasgow bank failed dis tl ere were cases of men alio only owned a share or two valued be fore the failure at net much more than a hundred dollars each who were as hessed thousands of pounds sterling to meet alie debts of the bank bance that time tl e scottish banks h ive been il lowed to re organize on a basis of lim lud mah f choa ion |