There are vanishingly few private companies of significant size. For example in the US most businesses with more than a few owners are government chartered corp

There are vanishingly few private companies of significant size. For example in the US most businesses with more than a few owners are government chartered corporations, LLCs, and the like. This gets them government granted liability shields, and so it makes sense for them to be proactively regulated to prevent causing foreseeable harm that they might otherwise escape responsibility for.