Site navigation

In a company limited by guarantee, liability of members is limited to:

Section 2(21) defines the guarantee liability by the contribution undertaken in the memorandum on winding up. A guarantee company can also have share capital, but liability…

Choose your answer

In a company limited by guarantee, liability of members is limited to:

Select one answer
Answer and explanation

Correct answer C

Section 2(21) defines the guarantee liability by the contribution undertaken in the memorandum on winding up. A guarantee company can also have share capital, but liability on its shares does not replace the guarantee undertaking. The Board cannot impose an unlimited guarantee or fix a new guarantee at winding up.

Practice for these exams

Related exam syllabi

Related questions in this topic