- 12 Marks
Question
a) Explain the types of companies known to you under the Companies Act, 1963 (Act 179). (12 marks)
Answer
- Private Company Limited by Shares: A company having the liability of its members limited to the amount, if any, unpaid on the shares respectively held by them. The number of its members must not exceed 20.
- Private Company Limited by Guarantee: A company having the liability of its members limited to such amount as the members may undertake to contribute to the assets of the company in the event of its being wound up. This refers to charitable organizations that are not supposed to make a profit.
- Private Unlimited Company: One not having any limits on the liability of its members as the name suggests.
- Public Company Limited by Shares: A company having the liability of its members limited to the amount, if any, unpaid on the shares respectively held by them. The number of members does not have any limits.
(4 points at 3 marks each = 12 marks)
- Tags: Companies Act, Company Law, Limited Liability, Public Company, Types of Companies
- Level: Level 1
- Topic: Types of capital and the financing of companies
- Series: MAY 2017
- Uploader: Dotse