Yet concerning all business realities. The topic of the following article is the liability of members within the company.
The latter, in fact, is governed by dynamics that vary from company to company. Let’s find out more.
The liability of shareholders in the joint stock company
In the limited company, the shareholders are not responsible for the debts accumulated by the company of which they are supporters. This means that, in the event of indebtedness, the shareholders will not be responsible for it.
The responsibility of members in simple partnerships
A different happens in people “civil partnerships”, for which they are precisely the members responsible for the debts of its own assets . In this activity the bankruptcy of the enterprise is equivalent to the bankruptcy of the person.
Responsibility in limited partnerships
In the limited partnership are the general partners – that is, those who administer the business – to have to provide in case of debt . In this case, the relationship is imperfect, as these members are forced to respond personally and with their own assets. The situation improves for limited partners, who instead lose only what they have invested with the participation fee.
In the case of hidden members
When the members have unlimited responsibility, they are all equally liable for the debt. Nonetheless, there are cases where determining liability becomes difficult. In fact, the names of the constituent members of a company must appear in the Register of companies.
However, this does not always happen. When a shareholder who is actually part of a company, of which he is also responsible, does not appear in the Register of Companies then it is appropriate to speak of a hidden shareholder. The civil code, however, states that this is also to be considered a person responsible.