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On Wednesday 25 October 2006 14:01, Robin Cornelius wrote: > > I think there is limited liability to the shareholders, hence the LTD, > with a private limited company, not sure with a PLC how that works. I > think there is also limited liability but if you have a lot of shares > this could still be significant, was this not what happened to a > certain banking company (of london) many years a go and the large > shareholders got the brunt of the fallout? You're getting two different things confused; if you're a shareholder in a limited company (either Ltd or Plc) and the company goes bankrupt, you've lost your money - this is always the case. Limited liability means that the company's creditors can't then go after the directors to recover the money they're owed, only the company itself is liable (shareholders are never liable for anything - they can only lose what they invest). In any other arrangement (including sole trader) if the company goes bankrupt, then the company's creditors CAN go after the owner(s) as they are liable for the company's debts. Regards, David. -- David Johnson www.david-web.co.uk - My Personal Website www.penguincomputing.co.uk - Need a Web Developer? -- The Mailing List for the Devon & Cornwall LUG http://mailman.dclug.org.uk/listinfo/list FAQ: http://www.dcglug.org.uk/linux_adm/list-faq.html