At this juncture, it would be useful to clarify that limited liability, even though is enshrined in modern corporate law as a right, should rather be viewed as a privilege of the shareholders. While the argument for limited liability structure is that it promotes entrepreneurship and innovation, an investment in a project is always a case of a risky bet that is calculated.
For the shareholders to enjoy limited liability in a venture that has potential negative externalities to the society in the form of defaults and its further ramifications, someone has to bear the costs when such externalities do materialise.