Historical Background

The concept of a limited liability company comes back to the beginning of the 19th century and the industrial revolution with its huge demand for cash and thousands of manufacturing and trading organizations, many of them being government backed.

Some of these early enterprises were successful, but many others failed, sometimes through misjudgements, incompetence or downright fraud. Often, when these businesses failed, investors were not only left in front of the losses depriving from their original investment, but also in front of the losses of the whole company.So, there was a rising demand for legislation for protecting stockholders and other investors.