Companies exist to limit the liability of shareholders / investors, not principals. The idea is that you can buy equity and receive dividends if the company goe

Companies exist to limit the liability of shareholders / investors, not principals. The idea is that you can buy equity and receive dividends if the company goes well, without standing to lose more than you put in if the company harms others through mismanagement. The company doesn't shield the directors from personal liability for that mismanagement as a matter of law, it just pays for high quality legal representation if the allegation is made.