ontario incorporation and debt

nlln0001 · #1 Apr 3, 2006, 03:13 AM

I was told , even if a business ( Ontairo limited / Ontario Inc) goes bankruptcy , 25 percntage of the borrowed unpaid business (bank) loan must be paid by the owner / share holders

is that true?

if so ,what would happen , if they cant pay ?

what are the other things that hold owner liablity even after the bankuruptcy?

CaptainForest · Apr 3, 2006, 01:31 PM

Who told you this? Because they were smoking something most likely.

Unfortunately, it can't be pot anymore since Harper is cracking down on the pot smokers.

You would NOT be responsible since the corporation has limited liability.

EXCEPTION: If you PERSONALLY co-sign or guarantee the loan given to the corporation.

Other than that, you will not be responsible for general loans to the corporation should it go under.



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!