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    nlln0001's Avatar
    nlln0001 Posts: 5, Reputation: 1
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    #1

    Apr 3, 2006, 04:13 AM
    Ontario incorporation and debt
    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 can't pay ?

    What are the other things that hold owner liablity even after the bankuruptcy?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Apr 3, 2006, 02:31 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.

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