The Immunity from Personal Liability Provided to the Shareholders of the Limited Liability Company by the Romanian Law

The concept of limited liability represents the cornerstone of the legal institution of the company as a professional operating an enterprise. There is a main consequences of incorporation of the company, namely the company becomes a legal entity separate from their shareholders (members who control it). Also based on the incorporation of the company, it is possible that the shareholders gain immunity from personal liability for the debts of this company. However, when the shareholders abuse the immunity provided by the legal personality of the company, courts will hold them individually liable for the company?s debts. Therefore, in the exceptional circumstances, when shareholders commit a fraud in establishing the business or in conducting the business, they are held liable for the damages caused to the third parties.