As usual, it is not the limited liability corporation per se, but the corrupt US version that is the issue. I've had the Austrian equivalent (GmbH, literally 'corporation with limited liabilty' in German) for over 20 years.

Here in Austria, a corporation may go bankrupt, but the managing director(s) "MD" or "Geschäfstführer" in German, cannot just walk away. They are personally liable for a long list of company debts, first and foremost taxes, social security, and employee health insurance (we have single payer health insurance here). So it is not possible for managers to see the end coming, stop paying debts while contuing to pocket incomes and then walk away.

But that is not all, when a company goes belly-up, the bankrtuptcy judge looks at the books and payments. If a company declares bankruptcy, they cannot pay anything without the OK of the judge, or the MD(s) are personaly liable. So you can't use the last company cash to pay your brother-in-law's consulting fees to your company.

For specific crimes, fraud charges and up to three years in prison are possible.

TL;DR; making the management of a limited liability corporation financially and criminally liable for the company they are leading would go a long ways towards reducing the problem of shitty companies.