... yet safe in the knowledge that should the creature not behave as anticipated they are well protected and liable only to the limit of their shareholding or undertaking. The creature on the other hand, may wreak havoc upon the community; incurring liabilities of its own of many tens of millions of pounds until its final expiration through insolvency or winding up and leave its creditors unable to enforce payment from its creators. So conceptually challenging was this scenario that when the issue of limited liability and the protection afforded to the company's creator was first considered1 their Lordships considered it a "device to defraud creditors" 2 and that it would be "...lamentable if a scheme such as this could not be defeated". 3 The House of Lords were not so reluctant and appreciated the benefits afforded to investors. In reversing the Court of Appeal's decision, their lordships considered that "the company ...

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