Assertion: close corporation's member | /r/HasProperty | held liable
Facets:
value: personally
type: MANNER
value: in their personal capacity
type: MANNER
value: for the losses of a cc
type: PURPOSE
value: in such an instance
type: TEMPORAL
value: as with a pty ltd company
type: OTHER
value: for any damages
type: PURPOSE
value: by the close corporation
type: OTHER
value: for liabilities
type: CAUSE
Source sentences:
text: However, there are times when the members can be held liable for the debt of the Close Corporation in their personal capacity, even if they did not sign surety for the Close Corporation.
text: Under these circumstances the fact that a Close Corporation was registered can be ignored as if it was not registered and the members be held personally liable as if the Close Corporation did not exist.
text: This is referred to as “lifting the corporate veil” and means that members who are “hiding” behind “veil” of the Close Corporation, will be taken out from their hiding place (the Close Corporation) and be held liable for the debts and liabilities of the Close Corporation.
text: The circumstances that members can be held liable in their personal capacity even if they did not sign surety, are the following sections of the Close Corporations Act (hereinafter referred to as “the Act”) :
text: If a member acts negligently and causes damage to the Close Corporation, the member can be held liable by the Close Corporation for any damages that the Close Corporation has suffered because of such negligence.
text: In such an instance the member can be held liable for the payment of such debt in his/her personal capacity.
text: As with a PTY LTD Company, the Members of a Close Corporation can be held liable for certain debts of the Close Corporation under certain circumstances - like reckless trading.
text: A member of a CC can be personally held liable for the losses of a CC if the member acts carelessly, or without skill.