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unlimited company
what do we mean by unlimited liability in company
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Unlimited liability company means the liability of all members is not limited to its value of shares but more than that.
If you purchase shares of X limited company for RS 50000/- (100 Shares @ 500 Each) then your liability is upto 50000/- only irrespective of Company financial situation.
However in case of X unlimited company your liability is not only upto 50000/- but more than that also based on Company situation.
If you purchase shares of X limited company for RS 50000/- (100 Shares @ 500 Each) then your liability is upto 50000/- only irrespective of Company financial situation.
However in case of X unlimited company your liability is not only upto 50000/- but more than that also based on Company situation.
Sorry not satisfied with your answer
An unlimited company or private unlimited company is a hybrid company (corporation) incorporated with or without a share capital (and similar to its limited companycounterpart) but where the legal liability of the members or shareholders is not limited: that is, its members or shareholders have a joint, several and non-limited obligation to meet any insufficiency in the assets of the company to enable settlement of any outstanding financial liability in the event of the company's formal liquidation.
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