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.
Related terms
-
Limited liability
The principle that shareholders or members are generally not personally responsible for a company’s debts beyond their agreed investment, unless a separate basis for liability exists.
-
Personal liability
A debt or legal obligation that falls on an individual personally and can potentially be enforced against their own income or assets.
-
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.
What’s your next step?
Get in touch with us at Bell & Company today to see how we can help