What is responsibility for shareholders?

When establishing a corporation, shares are sold to buyers who are called shareholders. These shareholders now own the company, but the legal liability for the debts or actions of the company falls mainly to the company itself or its Board of Directors, rather than shareholders. The scope in which the shareholder is responsible for any decision or conduct of the company is called the responsibility of the shareholders. In the corporation, the responsibility of shareholders is very limited. The shareholder in the area of ​​corporation will only lose its initial investment, rather than the sum of the company's legal debts. In addition, limited shareholder responsibility means that the shareholder can expand his portfolio by investing in multiple companies and increasing the capital group available to corporations. This allows corporations to take over much larger projects and related debt. In this situation, the shareholder must be more cautious to protect his personal assets. For example, when signing legal documents, it is important to realize the addition of an official title held with the sameSTI. This may reduce the responsibility associated with the signature.

The shareholder may increase his risk by guaranteeing business debt with personal assets called co -founder. In this case, the rule of limited liability of shareholders does not apply, and the personal assets of this shareholder could be confiscated to pay the debt. In addition, any legal impact or criminal accusations resulting from the actions carried out by the Company on the basis of this personal warranty could fall on shareholders.

There are many different types of corporations around the world, Governed by many different agencies. However, the concept of shareholders' liability is quite general and almost generally applies to a limited scope in which the shareholder is responsible for the company's conduct. In the US, a corporation is a legal person who takes responsibility for his own actions.

Society can serve as plaintiffs in civil or criminal proceedings and may bI have ordered to pay compensation in lawsuits. If the corporation cannot pay damages or fees, it may be dissolved. In such a case, the individual responsibility of the shareholders does not exceed the amount of the personal investment of this shareholder.