If I buy 1/10 000 of a company with 100 USD because it needed 1 million USD and decided to hand out shares for that, I'm expecting that this company is run properly, according to regulations, that I can sue someone should they just want to take the money and run and so on.
I understand entirely where you're coming from; and it is the risk of scammers that has resulted in the regulations on the finance industry that we have.
However... wouldn't it be better if people were forced to do their own due diligence before investing? Wouldn't we get a more efficient market if people were responsible (truly responsible) for their own investments; the money would go to where it would be most productively used.
Obviously there are risks of tricksters and it's worthwhile to try and stop that; outright fraud is illegal whatever the regulations are. But "invest me me, I have a pretty office" investments might actually be reduced if your shareholders have some skin in the game.
(I accept that I am probably being overly optimistic)