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Epica FAQ Series

What liabilities will I face if I have a high paid-up capital?

Share Capital

What liabilities will I face if I have a high paid-up capital?

What is the shareholders liability? What is liability in case of company with a high share capital?


Paid-up capital is technically the amount that has been paid up by shareholders to the subsidiary to purchase shares. This money can also be used for other company expenses.

If the amount has been fully paid, there is no personal liability on the individual shareholder. In case the amount is not fully paid, the creditors can demand that the shareholder be personally accountable for the deficit.

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