A Startling Judicial Opinion

Feilding Star, Volume X, Issue 43, 18 September 1888, Page 3

A Startling Judicial Opinion

♦ \~ i I» a recent lecture, delivered befor . the Institute of Bankers upon "Lim ited Liability," Lord Bramwem. gavi , the . startling information that thi shareholders in an Insurance Com pany are not always personally re I spoDsible. " Life and fire insurant L companies are really companies tha ) ! might be said to have limited liability I because they put in their policies no i ; that the individual members of th< ' ) society will be liable for the amount : : but that the funds of the society shal ' ' be liable for the amount; and, if b] 5 : ? any ill fortune, the funds of the soci ' ' ety are not sufficient to pay a debt, at ' individual member of the society mai | i say : 'I made no bargain with yoi : ! other than thdtthe funds of the soci ' ety shall be made liable for paying ' your debt. lam not liable.'" Th< r 1 above learned opinion opens a wid< ' and important issue, and shows no ' I only the extreme value of pur having [ Government security in life assurance : but suggests. that it, may eventually L -prove wise, if not absolutely-necessary, to have it in fire insurauce. At all ' events we feel assured if an arrange- ' ment could be made by any fire office with the Government to attach a State ' guarantee to their policies, that ii ! would, give more confidence to the general public than the representation of- enormous capital in large letters on tinted paper. We cannot, unfortunately, commend the above views to the consideration of Parliament; but we do sincerely trust that the matter may be digested by the average practical man of business, as wall as some of pur great leaders of finance.