2007-03-03 09:22:57 · 3 answers · asked by Anonymous in Business & Finance ➔ Corporations
Yes. They are limited to the value of the shares of the company and cannot go after the shareholders personal assets.
If you own shares in a tobacco company and they loose a suite, the lawyers can't go after you personal assets.
Now, if you form an S corp or an LLC, it will not protect you from your personal negligence. They will be able to pierce the corporation or company and go after your personal assets.
Good Luck
2007-03-03 09:32:26 · answer #1 · answered by A_Kansan 4 · 0⤊ 0⤋
Well, it is the law not the corporation that extends limited liability to shareholders. It takes a wrongful act by a shareholder to be exposed to liability. This is called piercing the corporate veil.
2007-03-03 09:31:29 · answer #2 · answered by Dr. Luv 5 · 0⤊ 0⤋
Yes. Only if the shareholder is actively involved in the day-to-day business can s/he be exposed to personal liability of those acts
2007-03-03 09:28:29 · answer #3 · answered by Homer J. Simpson 6 · 0⤊ 1⤋