INCORPORATION OF COMPANY

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Ashish

Ashish (Querist)
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22 September 2009 Q-1 WHAT IS THE DIFF. B/W LIMITED & UNLIMITED COMPANY .? EXPLAIN WITH EXAMPLE & NAME OF COMPANIES .

Ankur Garg

Ankur Garg (Expert)
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22 September 2009 Hi,

Companies limited by shares

These types of companies are quite common in commercial, trading and industrial world. Such companies are characterised with an authorised share capital of a certain amount, which is divided into shares. The authorised share capital may comprise of more than one kind of shares, viz. ordinary or equity shares (voting and non-voting) and preference shares. The liability of each member of such company is limited to the unpaid amount of shares and premium, if any, held by him.

Companies with unlimited liability: Every member in such a company is jointly and severally liable for all the debts and liabilities of the company.