Our corporate laws provide for limited liability to shareholders
as such liability relates to the corporation’s activities. The
risks of liability to shareholders are limited to the value of their
shares and shareholder loans owed to them by the corporation. If a corporation
goes bankrupt, a shareholder’s other personal assets are not at
risk (subject to certain improper acts by shareholders or in a situation
whereby the shareholder has guaranteed a corporation’s debt).
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The general opinions expressed herein are for information
purposes only and are not to be relied on. Individuals are encouraged
to seek legal advice as it relates to their specific fact scenario to
ensure they are fully aware of their legal rights and obligations.
