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KembaraXtra – Legal Terms – Limited Company
A limited company is a business entity formed under company law in which the liability of its members is restricted. This means that shareholders are not personally responsible for the company’s debts beyond their agreed contribution.
There are different forms of limited companies. In companies limited by shares, members are liable only for the unpaid value of their shares. In companies limited by guarantee, members agree to contribute a fixed amount if the company is wound up.
Limited companies must clearly indicate their status in their name, typically by including “Ltd” or “plc.” This informs creditors that liability is limited, distinguishing them from unlimited companies where members bear full responsibility.
A limited company is a business entity formed under company law in which the liability of its members is restricted. This means that shareholders are not personally responsible for the company’s debts beyond their agreed contribution.
There are different forms of limited companies. In companies limited by shares, members are liable only for the unpaid value of their shares. In companies limited by guarantee, members agree to contribute a fixed amount if the company is wound up.
Limited companies must clearly indicate their status in their name, typically by including “Ltd” or “plc.” This informs creditors that liability is limited, distinguishing them from unlimited companies where members bear full responsibility.
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