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3. On shareholders or directors of the company

After the granting of winding-up order, the shareholders' liabilities are limited to the value of shares held by them (limited by shares). In this case, there will be no liability further than the value of any shares in the relevant shareholders' names in which they have not yet paid for at the time the company is wound up. Another case, which is not common in the commercial field, is that the liabilities of shareholders are limited to the amount in which they have agreed to contribute to the company's assets if the company is being wound-up (limited by guarantee).

 

Directors will not be subject to personal liability unless they have obtained advantages from the company unlawfully or in breach of the duties as a director or they have given personal guarantees to the creditors (which is not uncommon in particular for bank loans). The powers of all directors of the company will cease after the making of a winding-up order.

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