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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2010 A PUblic limited company by guarantee wants to increase its liability. Will the members be liable for the increased liability?

Nikhil Kothari

Nikhil Kothari (Expert)
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14 November 2010 Yes ofcouse.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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14 November 2010 A company limited by guarantee is a registered company having the liability of its members limited by its memorandum of association to such amount as the members may respectively thereby undertake to pay if necessary on liquidation of the company. The liability of the members to pay the guaranteed amount arises only when the company has gone into liquidation and not when it is a going concern. A guarantee company may be a company with share capital or without share capital.

So yes the members will be liable for the increased liability as consented by them.

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Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2010 Thanks a lot sirs