A Newbie Guide to Investing

[specuvestor]

When a company is "Limited" it means the loss is limited to the equity of the company

But banks are also not stupid. So if they don't trust your $2 equity incorporation they will ask for collateral or even personal guarantee. The company can have a $100k asset and $2 equity but collateralised by the asset means the bank will lend say $50k and have right to seize and liquidate the asset in times of distress. That's why Hanjin ships were stuck cause they don't dare to be docked and be seized. If it is a personal guarantee in theory the owner assets can be seized but also depends where is the assets located eg China

And yes of course the interest of owners and opmi can differ if they have "side interest" Aligning shareholder interest is more than just having shares in the company, though that's one way. That's why they have to get shareholder approval for interested party approval to disclose the "side interest". Obscene remuneration is also a side interest.