The liability of members of a company limited by a guarantee is limited to............................. |
Unpaid value of shares Guaranteed Amount Unlimited Liability None of these |
Guaranteed Amount |
The correct answer is option 2- Guaranteed Amount. The liability of members of a company limited by a guarantee is limited to Guaranteed Amount. 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. |