Question

10. The liability of a shareholder in a company limited by shares is
a. Unlimited
c. Limited to the unpaid value of shares subscribed by him.
b. Limited by guarantee.
d. None of the above.​

Answer 1

10. The liability of a shareholder in a company limited by shares is?

Answer: c. Limited to the unpaid value of shares subscribed by him.

• Company limited by shares

The liability of each member of this company is limited to the unpaid part of face value of shares purchased by member. These types of companies have a share capital.

Also, a company limited by shares can be a public or a private company.

In case of a Public company limited by shares, the last word of the name should be ‘limited’. [like “XYZ Ltd.”]

Similarly, in case of a Private Company Limited by Shares, the last word of the name should be ‘Private limited’ [like: “ABC Pvt. Ltd.”]

In this company, the capital is collected by issuing of shares and thus, the liability of the members is limited to the unpaid face value of shares subscribed by them.

Answer 2

Answer:

✭ The liability of a shareholder in a company limited by shares is

➠ C) Limited to the unpaid value of share subscribed by him.

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Extra Information for General Knowledge :

★ Shareholder :

• Also referred to as a stockholder , is a person , company , or institution that owns at least one share of a company's stock , which is known as equity.

★ Stakeholder :

• Stakeholder impact is the primary consideration of social responsibilities.
• All stakeholders interests should be considered and balanced for an organisation to be socially responsible.