Untitled Deck Flashcards
What is the concept of limited liability?
Limited liability applies to the shareholders of a company, limiting their liability for the company’s debts to the amount of their investment.
Who is fully liable for a company’s debts?
A company is fully liable for all its debts and other liabilities, just like any other person.
What is the liability of directors and officers of a company?
Directors and officers act on behalf of the company and are not personally liable for the company’s debts if they act within their powers and according to the law.
What is the liability of members in a company?
The liability of the owners (members) of a company is limited to the amount of their investment, and they are not required to pay any additional amount in case of insolvency.
Is there any exception to the limited liability rule?
Yes, if the shares issued by a company have not been fully paid up, there is an exception to the rule of no further liability.
