if a company collapses under huge debts what action against individual share holders
Answers
You can be reassured by the fact that, as a shareholder, you have ‘limited liability’ for the debts of the company. That means you are only responsible for company debts up to the value of your shares.
More simply, the only money you risk losing if the company should fail is the money you put in.
This is all down to the principle of separate legal personality. When a business is incorporated i.e. it becomes a private limited company (LTD), public limited company (PLC), or limited liability partnership), the company and its shareholders become two separate legal entities. The company becomes responsible for its own finances and assets, which are not intertwined with the personal finances and assets of its shareholders.
Step-by-step explanation:
hope it helps you...plz mark my answer as brainliest