copartnery

in a private copartnery frequently watch over their own." 2 ADAM

at 264-65 ("[Directors of [joint stock companies], being the managers rather of other people's money than of their own, it cannot well be expected that they should watch over it with the same anxious vigilance with which the partners in a private copartnery frequently watch over their own").

In the Wealth of Nations, first published in 1776, Adam Smith credited the HBC with carrying on the trade with a considerable degree of success on account of its small size, which enabled it to have nearly the same degree of vigilance and attention as a copartnery. (5) In 1958, E.

In 1841 a new deed of copartnery was formed involving Robert Orr, James Orr, William Orr and John Orr Ewing (grandson of John Orr of 1786).

being the managers rather of other people's money than of their own, it cannot well be expected, that they should watch over it with the same anxious vigilance with which the partners in the private copartnery frequently watch over their own.

He had this to say about the directors of such a business: "Being the managers rather of other people's money than of their own, it cannot be well expected that they should watch over it with the same anxious vigilance with which partners in a private copartnery frequently watch over their own." Perhaps Smith was still influenced by the scandal of the South Sea bubble 60 years earlier.

McLennan noted, 'Savages are unrestrained by any sense of delicacy from a copartnery in sexual enjoyments; and, indeed, in the civilised state, the sin of great cities shows that there are no natural restraints sufficient to hold men back from grosser copartneries'.

Jensen and Meckling (1976) is the seminal paper in this area, but the concept has been known since at least Adam Smith:</p> <pre> "The directors of such companies [joint stock companies] however, being the managers rather of other people's money than of their own, it cannot well be expected that they should watch over it with the same anxious vigilance with which the partners in a private copartnery [corporation or joint stock company] frequently watch over their own.

[B]eing the managers of other people's money than of their own, it cannot well be expected that [the managers of widely held corporations] should watch over [public investors' wealth] with the same anxious vigilance with which partners in a private copartnery frequently watch over their own.

of his father's previous labours, and his own knowledge of accounts, in which he had been sedulously trained, he laid before the court a clear and intelligible statement of the affairs of the copartnery [Scott, 1912, p.

The directors of such [joint-stock] companies, however, being the managers rather of other people's money than their own, it cannot well be expected, that they should watch over it with the same anxious vigilance with which partners in a private copartnery frequently watch over their own....