LIMITED COMPANY

LIMITED COMPANY

Limited company means company either limited by share or limited by guarantee. A company is said to be limited when liability of the member towards the company is limited. The liability of a member is limited depending upon the form of company. Limited company is divided into two category such as limited by share and limited by guarantee.

LIMITED BY SHARE:

                                        Company limited by share means a company having the liability of its members is limited to unpaid amount on the shares restrictively held by them.

LIMITED BY GUARANTEE:

                                                    Company limited by guarantee means a company having the liability of the member is limited to such amount as the member undertake to contribute to the assets of the company in the event of its being wound up. The special feature of this type of company is that liability of the members to pay their guaranteed amounts arises only when the company goes into liquidation.

 limited by Guarantee Company may or may not have share capital.