On the basis of liability of its members, the company cannot be class…

NCERT (2026-27 edition):
Kinds of Companies – “… On the basis of liability of its members the companies can be classified into the following three categories: 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. … 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. … Unlimited Companies: When there is no limit on the liability of its members, the company is called an unlimited company.”