Limited Liability Formalities Sample Clauses
The Limited Liability Formalities clause defines the specific actions and procedures that must be followed to maintain the legal separation between a company and its owners, thereby preserving limited liability protection. This typically includes requirements such as holding regular meetings, keeping accurate records, and ensuring that business and personal finances remain separate. By outlining these formalities, the clause helps prevent situations where owners could be held personally liable for the company's debts or obligations, thus safeguarding the intended risk protection of the business structure.
Limited Liability Formalities. The Equityholder will adhere to the limited liability formalities of the Borrower in all transfers of assets and other transactions between the Equityholder and the Borrower. In general, the Equityholder observes the appropriate limited liability company formalities of the Borrower under Applicable Law.
Limited Liability Formalities. The Seller will adhere to the limited liability formalities of the Borrower in all transfers of assets and other transactions between the Seller and the Borrower. In general, the Seller shall observe the appropriate limited liability company formalities of the Borrower under Applicable Law.