A Theology of Incorporation with Limited Liability

Abstract:     
Those involved in business have long sought to limit their liability, either in specific contracts, or generally, for the risks they face. The widespread availability of general limited liability for corporations across the world since the early 19th century is thought to have contributed to the enormous economic growth over that period. The limited liability company is, however, often blamed for the adverse consequences of this growth, not least in Christian theology, where limited liability is thought by some to be contrary to Biblical principles. This article seeks to demonstrate that the limited liability company is not only consistent with Biblical theology in encouraging prosperity and freedom under limited government, specialisation and interdependence in business relationships, and broader human flourishing but reflects the character of God in reconciling ideas of Law and Grace.

Number of Pages in PDF File: 14

Keywords: Company Law, Incorporation, Limited Liability, Theology

JEL Classification: K22

working papers series