Site navigation

Under section 2(92) of the Companies Act, 2013, what characterises an unlimited company’s liability of…

An unlimited company is defined by the absence of a limit on its members’ liability. The unpaid-share limit belongs to a company limited by shares, while a specified…

Choose your answer

Under section 2(92) of the Companies Act, 2013, what characterises an unlimited company’s liability of members?

Select one answer
Answer and explanation

Correct answer A

An unlimited company is defined by the absence of a limit on its members’ liability. The unpaid-share limit belongs to a company limited by shares, while a specified undertaking in the memorandum belongs to a company limited by guarantee. The definition does not itself set a universal rule allocating every contribution in proportion to each member’s interest.

Practice for these exams

Related exam syllabi

Related questions in this topic