Exceptions for limited liability in ApS

It is repeatedly emphasized that the owner of a Danish limited liability company (ApS) is not personally liable for the company's debts, which means that he does not expose one's private assets. In theory this is true, but in practice there may be some exceptions to this rule.

If the owner of an ApS company wants to obtain financial support from a bank, but the only collateral he or she can offer is a share capital of DKK 20,000, he or she will likely have to supplement this with a personal guarantee or pledge of his or her private assets. Similar requirements may apply to cooperation with larger creditors. It's also worth remembering that once the company reaches a sufficient level of assets to take on the owner's obligations, personal collateral can be released.

In extreme cases, when an entrepreneur runs a company irresponsibly and causes significant losses to customers or creditors, he or she may be held personally liable as a director and shareholder. An example of such conduct may be signing contracts on behalf of the company, even if the owner of the limited liability company realizes that the company will not be able to repay them due to its poor financial condition.

It is also important to remember an important rule for limited liability companies: when half of the company's capital is lost, the company's owner has six months to call an extraordinary shareholders' meeting. According to the regulations, the company's board of directors must then present a report on the company's financial situation and propose possible steps to be taken, including considering the possibility of liquidation.

If the owner of a limited liability company fails to raise new capital, there is a risk of personal liability to creditors, which could jeopardize his or her private assets. That is why it is so important to comply with these regulations.