Limited Liability Company

[attiq]

can any one explain me limited liability company?

[Mukund]

Hi,

Limited liability Company: Is a company registered under Companies Act. People who subscribe shares of the company become owners of the company according to their investment in the company. This form of organisation is different than other types of business entities because of following points;

Limited liability: Share holders (owners) have limited liability towards the company; there is no charge on personal assets of the shareholders to repay liability in case of liquidity.

Separate legal status: Company is treated as having separate and legal person (mainly separate from its owners) which can be sued in courts and can be made liable for debts. The shareholders will not be sued or be held accountable for the debts of the company.

Hope this will help - For more information – refer GTG material F3 – SG A1

[akeel]

Limited liability means that owners are responsible how much they have invested. In case of any solvency, if owner are failed to pay then there personal property cannot be taken in return. Hope that I have explained right.

[limit_to_infinity]

Gor it damn right akeel bhai