First of all shareholder income should be taxed the same way as employment income. I think (at least in my country) it is absolutely disgusting that when you draw dividends from a business you pay less tax than if you were drawing a salary. If taxation was the same across the board, then there will be no incentive for shareholders to insist on extracting the value through dividends. The next thing is that in many cases shareholders are de-facto directors in terms of influence, this means they should also share the same liabilities and responsibilities. This should be a start to make it healthier.