Question 5

Which one of the following is a feature of 'limited liability' in a Pty Ltd company?

a. The members may be required to contribute an amount of money previously stated in the constitution if the company becomes insolvent

b. The liability of the shareholders is limited to a certain amount, that is, usually what is unpaid on the issue price for their shares

c. The company is liable without limit for its own debts

d. The debts of the company are limited to a certain amount, that is, the value of its capital