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To what extent is a company limited by shares liable to its creditors?

April 26, 2017COMPANY Creditors extent liable limited Shares

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To what extent is a company limited by shares liable to its creditors?

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A proprietary company has an unlimited liability to its creditors with all of its assets. Once the members have paid in their capital, they are not personally liable to the company’s creditors. The shareholders of a public company are not personally liable to the creditors. The public company’s liability is limited to the company’s assets.