Legal Question in Business Law in Indiana

are shareholders of a corporation personally liable for the debts of that corporation


Asked on 4/06/11, 4:26 am

2 Answers from Attorneys
Burton Padove Indiana and Illinois Lawyer, Burton A. Padove

No. absent a guarantee or an piercing of the corporate veil.

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Answered on 4/06/11, 5:20 am
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say the following. Typically they're not, abasent the corporation failing to observe corporate formalities or being undercapitalized - events that can lead to what is called "piercing the corporate veil." Also, if the shareholders personally guaranteed the debts, they can be held liable as well. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 4/06/11, 7:06 am


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