Unlimited company
As the name suggest unlimited company means there is no limitation of
liability. Member of this type of company has unlimited limited towards the
company. Here, one thing is important that members have no liability towards
the creditors.
As
per sec. 2(92) “unlimited company “means a company not having any limit on the liability of its members”.
Thus,
the maximum liability of the member of such a company in the event of its being
wound-up might stretch up to the full extent of their assets to meet the
obligation of the company.
An
unlimited company may or may not have share capital. u/s 18 a company registered
as an unlimited company may subsequently re-register itself as a limited
company, by altering its memorandum and articles of the company.
No comments:
Post a Comment