LifeinAsia - 5:40 pm on Feb 14, 2006 (gmt 0)

transferring the property of his website to this company to get rid of some of the legal responsibility

So now that property is an asset of the company, in addition to the legal issue, there's also the accounting issue as the transaction will have some tax implications. Whether the implications are immediate or delayed depends on exacly how the assets are transfered to the company- selling the property to the company for cash, trading assets for shares of stock, etc.

If the company gets sued, the company could be forced to sell the assets to pay for the judgement. Or if the company goes bankrupt, those assets would be sold to pay creditors as part of the bankruptsy settlement.