Share Liability: What You Need to Know


Questioner

If you have shares but no substantial interest, to what extent is liability limited in the event of non-performance by the board?

Lawyer

For breach of contract by the board, the board is liable and not the shareholder(s). Shareholders are in principle not liable towards creditors of the company. A shareholder can be liable if he has - in short - acted unlawfully. Your question is somewhat vague. If you need a (more) specific answer, please contact me.

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