Corporate liability
A debt or legal obligation owed by a company in its own name, rather than automatically by its directors or shareholders personally.
Related terms
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Personal liability
A debt or legal obligation that falls on an individual personally and can potentially be enforced against their own income or assets.
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Personal liability for company debt
A situation where a director, shareholder or other individual can be pursued personally for a company obligation because a separate legal basis for liability exists.
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Corporate veil
The legal separation between a company and the individuals behind it. It usually protects directors and shareholders from company debts unless a separate basis for personal liability exists.
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