private company limited by shares (Q3411)

type of company used in UK and India. For a company limited by shares, the liability of the members is limited by the Memorandum of Association to the nominal amount of his/her share or so much which remains unpaid. Therefore, the liability of the shareholder with respect to a Private Limited Company limited by shares is restricted to the paid-up share capital or any amount that remains unpaid. The shareholder cannot be held liable or asked to pay more than his/her share capital invested in the company.