Legal Question in Business Law in New Hampshire
owners of a company
My husband and a few other employees were given 1% share of a company, are we liable for anything if this company should be sued or any debts they may incur should they go under or the owners do shady deals and owe creditors?
1 Answer from Attorneys
Re: owners of a company
Generally not, though shareholders may be liable up to the distributions received as dividends or on account of their share ownership in the event that the distributions were determined to be "improper."
Of course, if someone has actual knowledge of wrongdoing, that's a different matter.
Otherwise, the existence of an entity (corporation or limited liability company) is intended to protect owners (including employees) from contractual debts of the entity, but not from tortious acts of the shareholders.
So, subject to those qualifications, shareholders, including employees, are not generally liable for liabilities of the entity.
Related Questions & Answers
-
Named as a defendant Acting as an employee of a DBA in NH I entered into an... Asked 2/27/08, 1:59 pm in United States New Hampshire Business Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
