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Is a shareholder personally liable for the debts and obligations incurred by a legal entity company?

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Radiif AI Legal Assistant

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A shareholder is not personally liable for the debts and obligations incurred by a legal entity company. Rather, the company alone is responsible for them, unless the Law or the Articles of Association stipulate otherwise, or it is proven that the shareholder agreed to bear them.

A shareholder is not personally liable for the debts and obligations incurred by a legal entity company. Rather, the company alone is responsible for them, unless the Law or the Articles of Association stipulate otherwise, or it is proven that the shareholder agreed to bear them.
Source: Radiif.com (رديف) · Saudi Legal AI Platform

Legal References & Citations

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نظام الشركات - Article 151

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