--- Michael Giesbrecht <[EMAIL PROTECTED]> wrote: > In a pure market, shouldn't the directors be personally liable, or not, > for a corporations debts, based on whatever terms they reach with the > lenders involved?
Yes, but there are also liabilities that can be incurred without contracts, such as if the corporation is sued for damages. > Without a personal guarrantee, from a primary > stakeholder, that serves to turn a limited liability into a full > liability, lenders are not very willing to make loans. True, especially if there is not adequate collateral, implying that expected future earnings are not sufficient additional collateral. Fred Foldvary ===== [EMAIL PROTECTED]
