Limited liability

Limited liability is central to Swiss corporations such as the Aktiengesellschaft (AG/SA) and the Gesellschaft mit beschränkter Haftung (GmbH/Sàrl). Shareholders or quota holders generally do not answer personally for company debts; their risk is limited to their investment or unpaid contribution. Exceptions may arise through personal guarantees, unlawful conduct, piercing-type abuse of legal personality, or directors’ liability. The concept encourages investment but requires rules on capital, disclosure, accounting, and creditor protection.