1. #1
    Unregistered

    What are the actual differences between company with limited and unlimited liability?

    I am accountant student. I am just 1st year degree in commerce and working as an accountant in CA on part time. We get lots of cases where it is written as company is registered with limited liability or unlimited liability. What is the difference between both?

  2. #2
    Labournet Law Consultancy Array
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    Oct 2012
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    Re: What are the actual differences between company with limited and unlimited liability?

    A company can be a limited or unlimited. Limited liability company is one which limits the liability of the members(shareholders)

    by (1) limited by shares or (2) limited by guarantee. Therefore Company limited by guarantee is a type of limited company which

    means the liability of the members' is limited by the guarantee given by them while becoming the member. The members have

    agreed to be liable to the company at the time of liquidation of the company upto an amount for which he is liable and does not

    have any other liability. Limited by shares means the member (shareholder) is liable for the value of the shares only. Members of

    the company with unlimited liability has unlimited liability for which they are liable even from their personal property if required.

  3. #3
    bajigopikanth Array
    Join Date
    Jan 2013
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    35

    Re: What are the actual differences between company with limited and unlimited liability?

    hai frnd................

    the company with limited means the 51% of companies share is under the hands of govt i.e public sector i.e ours(citizen)
    we can buy a share or sell when we need but
    these possibilties are not and easy in the unlimited company...............
    the ltd company matters like recriutment ,salary ,facilities will be take care by govt mainly............
    these are not found in unlimited company.
    thank you

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