Moreover, management can't really pass responsibility for its own actions to the shareholders, because the shareholders have no control whatsoever. If three months down the road Erik comes and says "hey, we had a break-in, the funds are gone" then how exactly can Random Q Investor verify this claim, make sure it's not something like Vircurex pulled recently? And if Erik never comes and says thus, what's the point of the entire maneuver? In all circumstances they with the ability to prevent losses are they who must be responsible for the losses.