Question : The liability of a shareholder is limited to _________ of the shares allotted to him.
Option 1: Paid up value
Option 2: Called up value
Option 3: Face value
Option 4: Reserve price
Answer (1)
18th Jan, 2024
Correct Answer: Face value
Solution : Answer = Face value
Liability of its members is limited to the value of shares subscribed by them or the amount guaranteed to be paid at the time of winding up in the case of companies limited by guarantee. However, in the case of companies incorporated with unlimited liabilities, the liabilities of members are unlimited.
Comments (0)
