Site navigation

In a company limited by shares, what is the statutory limit of a person’s liability as a member?

Section 2(22) limits membership liability to any unpaid amount on the shares held. Fully paid shares create no further contribution under that definition. Separate…

Choose your answer

In a company limited by shares, what is the statutory limit of a person’s liability as a member?

Select one answer
Answer and explanation

Correct answer B

Section 2(22) limits membership liability to any unpaid amount on the shares held. Fully paid shares create no further contribution under that definition. Separate contractual guarantees are a separate contractual obligation and do not alter the statutory measure of liability as a member.

Practice for these exams

Related exam syllabi

Related questions in this topic