Eli5: why the shareholders in a company are not liable to pay debts owed by the company?
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A loan is just a common civil contract. The lenders can ask from nothing to your grandmother’s earrings as collateral.
There are loans that require the owners or directors to personally guarantee the debts and there are some that dont really need anything. A loan just a contract and they can ask for whatever they want. Typical corporate bonds do not require shareholders to share liability because the lenders deem the company’s assets to be sufficient in the event of liquidation and default risk is acceptable.
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