private company limited by guarantee (Q3412)

In a Private Limited Company – limited by guarantee, the liability of the members is limited to the amount of liability undertaken by each of the members in the Memorandum of Association. Therefore, the members of a Private Limited Company – Limited by Guarantee cannot held liable for an amount higher the amount of guarantee undertaken by the member in the Memorandum of Association. Further, the guarantee of the members in a Company Limited by Guarantee can be called-for only in the case of winding-up of the Company. When the company is a going concern, the guarantee of the members of a Company Limited by Guarantee cannot be revoked.