- 1 Marks
Question
A company that limits its liability by what members undertake to contribute to its capital is called …………………………
Answer
A company limited by guarantee
Explanation:
A company limited by guarantee is one in which the liability of members is restricted to the amount they agree to contribute to the company’s assets in the event of it being wound up. This structure is often used for non-profit organizations.
- Tags: Company Law, Liability of Members, Limited by Guarantee
- Level: Level 1
- Topic: Company Law
- Series: NOV 2011
- Uploader: Theophilus