The correct answer is option 4- (A)-(III), (B)-(IV), (C)-(I), (D)-(II).
| LIST I |
LIST II |
| (A) Companies Limited by Shares |
(III) If a member has paid the full amount of the shares, there
is no liability on his part whatsoever for the debts of the company |
| (B) Companies Limited by Guarantee |
(IV) The liability of its members is limited to the amount they undertake
to contribute in the event of the company being wound up |
| (C) Unlimited Companies |
(I) When the company's property is not sufficient to pay off its debts, the
private property Shares of its members can be used for the purpose |
| (D) Private Company |
(II) Restricts the right to transfer its shares |
(A) Companies Limited by Shares- (III) If a member has paid the full amount of the shares, there is no liability on his part whatsoever for the debts of the company.
Companies Limited by Shares: In this case, the liability of its members is limited to the extent of the nominal value of shares held by them. If a member has paid the full amount of the shares, there is no liability on his part whatsoever may be for the debts of the company. He need not pay a single paise from his private property. However, if there is any liability involved, it can be enforced during the existence of the company as well as during the winding up.
(B) Companies Limited by Guarantee- (IV) The liability of its members is limited to the amount they undertake to contribute in the event of the company being wound up.
Companies Limited by Guarantee: In this case, the liability of its members is limited to the amount they undertake to contribute in the event of the company being wound up. Thus, the liability of the members will arise only in the event of its winding up.
(C) Unlimited Companies- (I) When the company's property is not sufficient to pay off its debts, the private property Shares of its members can be used for the purpose.
Unlimited Companies: When there is no limit on the liability of its members, the company is called an unlimited company. When the company’s property is not sufficient to pay off its debts, the private property of its members can be used for the purpose. In other words, the creditors can claim their dues from its members. Such companies are not found in India even though permitted by the Companies Act.
(D) Private Company- (II) Restricts the right to transfer its shares.
Private Company: A private company is one which by its articles of association:
- (a) Restricts the right to transfer its shares;
- (b) Limits the number of its members to 200 (excluding its employees);
- (c) A private company must have at least 2 persons, except in case of one person company.
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