Are shareholders personally liable for wrongdoing committed by the company?

No. Shareholders are generally not personally liable for wrongdoing committed by the company, as a company is a separate legal entity.

Their liability is usually limited to the amount unpaid on their shares.

However, shareholders may be held personally liable in certain situations, such as:

• If they are directly involved in the wrongdoing
• If there is fraud or wrongful conduct
• If the court “lifts the corporate veil” due to misuse of the company structure

In normal circumstances, shareholders enjoy limited liability protection.