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Hi Sir,
I came across below question of which I am still confused. Could you kindly help?
Which of the following companies does Not have the share capital?
A Public company
B A company limited by guarantee
C An unlimited liability companyThe answer from the book is B. I personally answered C for below reason:
A private company can be limited by guarantee and having a share capital or by limited by share capital.
If in the unlimited liability company the members have the unlimited liability and share defines the liability of share holder/member, how can the unlimited liability company have the share capital?
Thanks
Gabbi
Shares do not only identify liability limits – they may also be used to allocate voting power
A private company may be limited by guarantee. It may or may not have a share capital (that’s not the same as you have written!)
This is not one of my questions – it must be BPP or Kaplan!
Since 1982 (I believe, but the date isn’t important) no more private companies limit by guarantee and having a share cital may now be registered so that’s probably why the given answer is “b”
But it’s a poor question in that there do stil exist private companies limited by guarantee with a share capital that were created before the relevant date
Ok?
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