Liability of Shareholders in Private Limited Company

Liability of shareholder in Private Limited Company is limited to the unpaid amount of share capital which is mentioned in the MOA & AOA only. Directors are responsible for the act of the company, Not shareholders.

Shareholders are the owners of the Company and directors are to operate the Company. As per Companies Act 2013, the shareholders are the owners and still, they are separate from a Company.

All the shareholders are liable up to the unpaid amount of share capital. Shareholders are not liable for any act of the company. Although, Shareholders passes the resolution for the approval of any project in the Annual General Meeting. Still, they are not liable for any act of the company.

One shareholder cannot be held liable for the act of other Shareholder, they all are independent of the act of one and other.

Directors are liable for the acts of the Company.

The table shows the responsible person for the Following Liabilities:- 




Act of the Company

Debt on Company

Unpaid Amount of Share Capital


Fraudulent Act by Company

Dissolution of Company

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