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Can shareholders be liable for acts or omissions of the corporate entity/entities?

April 26, 2017acts corporate entities entity liable omissions Shareholders

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Can shareholders be liable for acts or omissions of the corporate entity/entities?

1 Answer

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10 Posted

The liability of shareholders is limited to the par value of their shareholding in the company. If a shareholder is involved in the company’s management, he would be liable for his acts as a manager during his term of office, although not in his capacity as a shareholder.