Lexipedia

Limited liability

Limited liability restricts investors’ exposure to the amount contributed or agreed, while the company remains liable with its own assets.

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.