- 10 Marks
BCL – L1 – Q51 – Alternative forms and constitutions of business organisations
Explain advantages of a company limited by shares under the Companies Act.
Question
Section 9 of the Companies Act, 1963 (Act 179) provides that a company limited by shares is “a company having the liability of its members limited to the amount, if any, unpaid on the shares respectively held by them”.
Required:
State and explain TWO (2) advantages that exist for a company limited by shares.
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