Explain the following concept:

Company limited by guarantee

5 views

1 Answers

  • Such a company is formed under Section 2(21).
  • This company may or may not have share capital.
  • Member promises to pay a fixed amount at the time of liquidation.
  • This fixed amount is mentioned in the Memorandum of Association.
  • This amount is used to pay debts and liabilities.

5 views