3 ms·

It would be highly unusual and I dare say impossible for Uber shareholders to ever have to pay a settlement out of funds not already invested in the company. Th

by harryh 9y ago

It would be highly unusual and I dare say impossible for Uber shareholders to ever have to pay a settlement out of funds not already invested in the company. This is the essence of limited liability.

pbhjpbhj 9y ago
AIUI the "Limited" company in the UK limits a shareholder's liability to the value of the shares they hold - so if you hold £1M of shares that's your liability. I assume it works similarly in USA?
- harryh 9y ago
  Yes correct. The worst financial outcome for holders of Uber stock is that their shares become worth zero. They can't go negative.
  - freyir 9y ago
    If the Saudis were misled in their $3.5B investment? IANAL, but individuals might be held accountable.
venantius 9y ago
The exception here is if the firm is found guilty of criminal activity and evidence emerges to suggest that Benchmark knew about it. In that case I don't know that they would be financially liable, but directors and board members would stand the risk of jail time.