Limitations of Liability of the Board and Shareholders of the Investment Company Clause Samples

This clause defines the extent to which the board members and shareholders of the investment company are protected from personal liability for the company's obligations or actions. Typically, it stipulates that any debts, losses, or legal claims against the company cannot be enforced against individual board members or shareholders beyond their investment in the company. For example, if the company faces a lawsuit or financial loss, only the company's assets are at risk, not the personal assets of its board or shareholders. The core function of this clause is to allocate risk by ensuring that personal liability is limited, thereby encouraging investment and participation in the company without exposing individuals to undue personal financial risk.
Limitations of Liability of the Board and Shareholders of the Investment Company. The execution and delivery of this Agreement have been authorized by the Board of the Investment Company and signed by an authorized officer of the Investment Company, acting as such, and neither such authorization by the Board nor such execution and delivery by such officer shall be deemed to have been made by any of them individually or to impose any liability on any of them personally, and the obligations of this Agreement are not binding upon any member of the Board or Shareholders of the Investment Company, but bind only the property of the Fund, or Class, as provided in the Declaration of Trust.
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Related to Limitations of Liability of the Board and Shareholders of the Investment Company

  • Limitations of Liability of Trustees and Shareholders of the Company The execution and delivery of this Agreement have been authorized by the Trustees of FAS and signed by an authorized officer of FAS, acting as such, and neither such authorization by such Trustees nor such execution and delivery by such officer shall be deemed to have been made by any of them individually or to impose any liability on any of them personally, and the obligations of this Agreement are not binding upon any of the Trustees or Shareholders of FAS, but bind only the property of FAS, as provided in FAS’s Declaration of Trust.