The following section provides an overview of the primary responsibilities of shareholders under the Companies Acts, under secondary legislation and related case law. For further details, please see the ODCE Information Book "The Principal Duties and Powers of Members and Shareholders"downloadable under the "Related Links" section at the end of this page.
Duties of Members and Shareholders
The principal duty of a member who is a shareholder in a limited liability company with share capital is to pay the company any outstanding amount of the purchase price agreed for the shares allotted to him or her. This sum becomes payable either where the company makes a call for funds or, in circumstances where the terms of issue of the shares provide for the payment of instalments, on the payment date. Shareholders in a company with unlimited liability are liable without limit for the debts of the company where it is insolvent i.e. unable to pay its debts.
Readers should refer to Information Book 1 dealing with Companies for further information on limited and unlimited liability and share capital.