This is an absurd idea.

That would be a complete detriment to one of the greatest innovations in financing: Seperation of capital and responsibility. When you buy a stock you know you can not loose more than the stocks value, so you dare to invest.

Also, would bond holders also be burdened with this? what about derivatives?

But this is exactly what happens when you fine a company.

Unless you fine the company enough for it to go into bankruptcy in which case the shareholders are protected by limited liability and the creditors take the hit instead. But the bankruptcy angle is completely irrelevant to this case, none of the fines considered are close yo bankrupting Google.

I have investments in a lot of different companies. I have no idea if any of them are breaking the law. I have to assume that they aren't, because they have not been charged or convicted of any crimes previously. I have done as much due diligence as I can to assume that their company is financially solvent and stable. If they have lied to me about any of those things, I have no way of knowing until after the fact. Leaving my money in a savings account is not an option, because the interest rates are taxed, and don't even cover the cost of inflation, let alone give me any sort of growth for retirement. That means not only would I not preparing for my future, I would actively be losing money by not investing.

If a country violates international sanctions, should I be sent to The Hauge because I have bonds tied to the bridges and roads being built by that government?

To put it another way: If a restaurant is shut down for health code violations found in the kitchen, should the valet be lectured about proper food preparation?