Taxation Advice re:Brookefield

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Thinking back to business studies....

As a sole trader you have (personal) unlimited liability to business related risks. As a ltd company, the liability is to the limit of the share capital of the company.

However, this limit goes out the window in some cases of negligence:

Structuring a Ltd company:

These indemnities commonly seek to safeguard directors against liability for negligence, breach of duty or trust or for default. However company law limits the indemnity that can be provided to cases where the director is involved in proceedings where the judgement was in his favour; or where the director was acquitted because he acted honestly and reasonably. Any other indemnity is void

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