FAQs / Are shareholders liable for companies’ debts?

A shareholder is not liable for the debts or other obligations of the company except to the extent of any commitment made to buy shares. The benefits of owning shares include a right to participate in profits (through dividends) and the right to share the residue of assets of the company, once liabilities have been paid off, if it is ever dissolved.

Posted in: Company Directors and Shareholders FAQs

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