Here' a hypothetical: Jack is in charge of shareholders' funds....

Here' a hypothetical: Jack is in charge of shareholders' funds. Jack buys two Ferraris. His payment cheque bounces. The debt collectors are quickly at his front door. Jack couldn't care less because he'll use the investors money to pay the car dealership. If there is insufficient shareholder money, the shareholders will have to chip in with their own cash because they agreed to a crazy clause presented to them. Jack goes off on a luxury cruise.