what liability do I have as a shareholder?

[anonymous-user]

As the title says, what liability/obligations does a shareholder of a small firm have, if any? I have a small shareholding (less than 5%) of a small company which I obtained as part of a bonus structure, company is still trading.

I didn't check this out at the time I was given the shareholding but if the firm was to get into any financial difficulty, legal disputes or similar situations could I be held liable, financially or otherwise or as I hope would it simply be the directors that would be held liable?

[E36GUY]

Assuming you're only a shareholder then you won't carry any liability if the company goes belly up but you'd obviously lose your financial share.

If you're a director, then you'd be liable.

[Muncher]

You're limited to the value of your shares. i.e. if you've 100 ordinary shares at £1 each and haven't actually paid the £100 you're liable for that. Other than that you're in the clear.

[Camoradi]

The "Limited" in Limited company stands for Limited Liability.

Your liability is limited to the sum of your shareholding. i.e. You can lose your money, but nobody can pursue you for any other liabilities of the company

HTH

eta (beaten to it)

Edited by Camoradi on Monday 11th August 12:52

[anonymous-user]

Thanks folks, the shareholding is (in my opinion) not worth much at all at the moment, but is something I planned to hang onto for the future in the hope that the company grows and is worth something eventually.
I just wanted to check if I was leaving myself open to risk (as I don't have a huge involvement in the running of the company), for the sake of a few £.

[djohnson]

You can lose the money paid for your shares. If your shares are not fully paid (which is very rare) then you can be forced to cough up the unpaid amount.

If you are a director as well then the game changes a little bit with.