Types of company as per member liability

Types of company as per member liability

Unlimited liability – In these types of company, the members or partners of company have a unlimited liability. If an unlimited company does not have enough for all payment, it will be shift to share holders. These types of company are rare in current time frame.

 

Limited by Guarantee – In these types of company, partners are limited by guarantee. Amount will be mention in Memorandum. Amount will be pay when they winding up the company. These types of company not formed for economic gain or profit, but they are generally for art, culture, charity, science or sports.

company as per member liability

Limited by share – These types of company normally registered with an amount which is mention in its MOA (Memorandum of Association). This investment or capital divided a numbers of shares like one rupee, ten rupee or so on. If any person wants to become a member, firstly he buys some share & his name also write-down in register after that he become a member of company.

Government companies – If Government have at least 51% share of any company, we call it a Government company. May be this ratio held by central Government, state Government or other local bodies.