PDSnet Glossary

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Definition

A private company, used mostly by professionals such as doctors, engineers, lawyers or accountants, in which the directors and previous directors can be held personally liable for the debts of the company. The shareholders are not held liable - which is the difference between this type of organisation and a public company. Personal liability companies can have any number of shareholders - so they are not limited in the same way as a private company. They must include the word "Incoporated" in their name. Personal liability companies are treated as separate juristic persons, seperate from their owners.

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