Question

Which type of liability do the members of company limited by guarantee have?​

Answer 1

Explanation:

Members will have protection for being held liable in their personal capacity for the amount borrowed for business in the name of the company

Answer 2

Members of a company limited by guarantee have limited liability.

Explanation:

1. Limited liability can be defined as the liability of members of a firm where they are supposed to pay only for their share in the company.
2. In simpler terms, the personal assets of people are not involved to pay the liability of a business facing losses.
3. Limited liability creates security for the shareholders and owners of the company as their personal assets remain untouched in case of bankruptcy, insolvency, or winding up of the firm.