On the contrary, the legal mechanism is vitally important.
If every venture that involved gathering together a group of people to bring sufficient capital, labor and IP to bear on a problem or opportunity ALSO faced the personal ruin of its participants should it fail or cause injury or death or despoilment, it would be extremely difficult to convince such organizations to form.
It is vitally important for such organizations to have limited liability for their participants i.e. for society to indemnify the participants against potential harmful outcomes from their endeavor.
If every venture that involved gathering together a group of people to bring sufficient capital, labor and IP to bear on a problem or opportunity ALSO faced the personal ruin of its participants should it fail or cause injury or death or despoilment, it would be extremely difficult to convince such organizations to form.
It is vitally important for such organizations to have limited liability for their participants i.e. for society to indemnify the participants against potential harmful outcomes from their endeavor.