It additional postulates that the original concept was to guard the ultimate traders, rather than let company groups operate in such a way as to make every individual entity indistinguishable. Undoubtedly, there is the potential for company group to relieve themselves of legal responsibility by hiding behind the company veil. However, this argument is diminished if there is a single mother or father company shareholder that has no marketplace for shares in subsidiary. Thirdly, restricted liability promotes market efficiency, as the value at which shares are traded doesn’t depend on the wealth of every shareholder. Fourthly, restricted legal responsibility facilitates funding decision through the separation of administration functions and funding. But it has an impact that distorts the free market; it permits the entrepreneur to externalise some risk and impose it on the society at giant.
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