Limitation on Personal Liability of Shareholders, Partners and Members Clause Samples
The "Limitation on Personal Liability of Shareholders, Partners and Members" clause serves to protect individuals who own or have an interest in a company—such as shareholders in a corporation, partners in a partnership, or members in a limited liability company—from being personally responsible for the debts and obligations of the business. In practice, this means that if the company faces lawsuits or financial losses, only the assets of the business entity are at risk, not the personal assets of its owners or investors. This clause is essential for encouraging investment and participation in business ventures by ensuring that personal financial exposure is limited to the amount invested in the company, thereby allocating risk and providing legal clarity.
Limitation on Personal Liability of Shareholders, Partners and Members. Anything to the contrary contained in any Loan Document, none of the constituent shareholders, partners or members in Borrower shall have any liability whatsoever for the payment or performance of any of the Obligations. Without limiting in any manner the generality of the foregoing, Lender shall have no right to recover from any constituent shareholder, partner or member in Borrower any Distribution from Borrower; provided, however, that nothing in this Section 11.21 is intended, or shall be deemed, to constitute a waiver of any rights Lender may have under the United States Bankruptcy Code or other applicable law with respect to fraudulent transfers or conveyances.
Limitation on Personal Liability of Shareholders, Partners and Members. Notwithstanding anything to the contrary contained in any Loan Document, none of the constituent shareholders, partners or members (direct or indirect) in any Borrower shall have any liability whatsoever for the payment or performance of any of the Obligations. Without limiting in any manner the generality of the foregoing, Administrative Agent shall have no right to recover from any constituent shareholder, partner or member (direct or indirect) in any Borrower any Distribution from such Borrower; provided, however, that nothing in this Section 13.27 is intended, or shall be deemed, to constitute a waiver of any rights Administrative Agent may have under the United States Bankruptcy Code or other applicable law with respect to fraudulent transfers or conveyances.
Limitation on Personal Liability of Shareholders, Partners and Members. Notwithstanding anything to the contrary contained in any Loan Document, none of the constituent shareholders, partners or members (direct or indirect) in Borrower shall have any liability whatsoever for the payment or performance of any of the obligations evidenced by the Loan Documents. Without limiting in any manner the generality of the foregoing, Lender shall have no right to recover from any constituent shareholder, partner or member (direct or indirect) in Borrower any distribution from Borrower; provided, however, that nothing in this Section 8.19 is intended, nor shall it be deemed, to constitute a waiver of (a) any rights Lender may have under the United States Bankruptcy Code or other applicable law with respect to fraudulent transfers or conveyances or (b) the obligations of Guarantor under the Repayment Guaranty or any other guaranty executed in connection with the Loan.
Limitation on Personal Liability of Shareholders, Partners and Members. Notwithstanding anything to the contrary contained in any Loan Document, none of the constituent shareholders, partners or members (direct or indirect) in Borrower shall have any liability whatsoever for the payment or performance of any of Borrower or Operating Lessee’s respective obligations under the Loan Documents; provided the foregoing shall not limit the 66 liability of any such Person under any guaranty executed by such Person for the benefit of Lender in connection with the Loan. Without limiting in any manner the generality of the foregoing, Lender shall have no right to recover from any constituent shareholders, partner or member (direct or indirect) in Borrower or Operating Lessee in any Distribution from Borrower or Operating Lessee; provided, however, that nothing in this Section 12.28 is intended, or shall be deemed, to constitute a waiver of any rights Lender may have under the Bankruptcy Code or other applicable law with respect to fraudulent transfers of conveyances.
Limitation on Personal Liability of Shareholders, Partners and Members. Notwithstanding anything to the contrary contained in any Loan Document, none of the constituent shareholders, partners or members (direct or indirect) in Borrower shall have any liability whatsoever for the payment or performance of any of the Obligations except to the extent expressly set forth in any guaranty delivered to Lender by any such party. Without limiting in any manner the generality of the foregoing, Lender shall have no right to recover from any constituent shareholder, partner or member (direct or indirect) in Borrower any Distribution from Borrower except to the extent expressly set forth in any guaranty delivered to Lender by any such party; provided, however, that nothing in this Section 13.27 is intended, or shall be deemed, to constitute a waiver of any rights Lender may have under the United States Bankruptcy Code or other applicable law with respect to fraudulent transfers or conveyances.