The directors of such companies, however, being the…
“The directors of such 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 frequently watch over their own… Negligence and profusion, therefore, must always prevail, more or less, in the management of the affairs of such a company.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Company managers, handling others' money, lack the same vigilance as private partners, leading to negligence and excess in corporate management.
In simple terms: Managers of others' funds often become careless.
Key Takeaway
Implement stricter oversight.
Themes
economics
business
ethics
Mood
analytical
cautious
Type
advisory
critical
When to use this quote
- corporate audits
- shareholder meetings
- risk management
- policy drafting
Key Concepts
agency problem
principal‑agent
corporate governance
Questions to Reflect On
- How can we balance oversight with efficiency?
- What incentives improve managerial care?
A Different Perspective
Oversight can increase costs and reduce flexibility.