Liability Basics: What Limited Liability Means

Protect Yourself with Limited Liability Law

What is limited liability? Limited liability means that the shareholders, directors and employees of a company are not liable for losses caused by their negligence or wrongdoing. This protection applies in both criminal law and civil law cases and it is defined by llc operating agreement florida. It means that if you were to get into an accident because of someone else’s negligence, you can’t sue them personally for your injuries since they have limited responsibility. However, there are some exceptions to this rule.

LLC Operating Agreement Florida

The first exception is if they are a partner in the company. If they were to get into an accident because of someone else’s negligence, then their own personal assets will be used to pay for what happened. The second exception is if you can prove that it was intentional or reckless behavior on the part of those with limited liability as opposed to negligent behavior. This would include driving without due care and attention which could lead to injury-causing accidents.

In addition, directors who commit fraud may have unlimited responsibility when it comes to paying damages caused by their wrongdoing. Also, the company itself can’t be sued for what it does or doesn’t do. However, if someone decides to sue the company, then it can use its assets and money from previous years to pay for any damages.

Another exception is if the company has been declared insolvent by a court and is unable to pay its debts. This means that anyone who gives money, goods or services to it will not be compensated for their loss as they would have in other circumstances.