Question

What does the term "company limited by guarantee" refer to as per the Companies Act?

Q: Answer-What does the term 'company limited by guarantee' refer to as per the Companies Act?

Section 221 Company limited by guarantee means a company having the liability of its members limited by the memorandum to such amount as the members may respectively undertake to contribute to the assets of the company in the event of its being wound up.

A A company where members' liability is limited to the unpaid value of shares they hold

B A company where members' liability is unlimited, and they are responsible for all debts

C A company where the liability of its members is limited by the memorandum to an amount they undertake to contribute to the company's assets in the event of its winding up

D A company where liability is limited to the company's annual profits

E A company where members' liability is limited by shares issued to them

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What does the term "company limited by guarantee" refer to as per the Companies Act?

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