There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  The liability of the member (shareholder) of a company is limited to the amount of shares owned by him.
Reason (R):  Liability of a member (shareholder) is limited to the shares subscribed by him in the case of Companies with limited liability.

Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

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.