Monday, November 27, 2006


Limited Liability and Its Discontents (Gilbert and Sullivan Edition)

Apparently, critics of limited liability have been around for a long time. From Gilbert and Sullivan's Utopia, Limited, the song Limited Liability:

MR. GOLDBURY.
Some seven men form an Association,

(If possible, all Peers and Baronets)

They start off with a public declaration

To what extent they mean to pay their debts.

That's called their Capital: if they are wary

They will not quote it as a sum immense.

The figure's immaterial--it may vary

From eighteen million down to eighteen pence.

I should put it rather low;

The good sense of doing so
Will be evident at once to any debtor.

When it's left to you to say
What amount you mean to pay,

Why, the lower you can put it at, the better.


CHORUS.

When it's left to you to say,

What amount you mean to pay,

Why, the lower you can put it at, the better.


MR. GOLDBURY.

They then proceed to trade with all who'll trust 'em,
Quite irrespective of their capital

(It's shady, but it's sanctified by custom);
Bank, Railway, Loan, or Panama Canal.
You can't embark on trading too tremendous--

It's strictly fair, and based on common sense--
If you succeed, your profits are stupendous--
And if you fail, pop goes your eighteen pence.
Make the money-spinner spin!
For you only stand to win,

And you'll never with dishonesty be twitted.
For nobody can know,

To a million or so,

To what extent your capital's committed.


CHORUS.
No, nobody can know,
To a million or so,
To what extent your capital's committed.


MR. GOLDBURY.

If you come to grief, and creditors are craving,
(For nothing that is planned by mortal head

Is certain in the Vale of Sorrow-saving

That one's Liability is Limited),--

Do you suppose that signifies perdition?
If so you're but a monetary dunce--
You merely file a Winding-Up Petition,

And start another Company at once!

Though a Rothschild you may be

In your own capacity,

As a Company you've come to utter sorrow--

But the Liquidators say,
"Never mind--you needn't pay,"

So you start another company to-morrow!


CHORUS.
But the Liquidators say,
"Never mind--you needn't pay,"

So you start another company to-morrow!




Hat Tip: David Culpepper

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