Doubt?

In both cases, the liability of a company's members is limited. So the difference between the two is the basis upon which that limited liability is calculated. Where liability is limited by shares, in the event of an insolvent liquidation, a member that has an interest in a company limited by shares can be required by the liquidator to pay cash into the company but the limit of that required payment is "the amount (if any) as yet unpaid on shares held by them" So a $1 share, 70 cents paid, means that the shareholder may be required to pay in 30 cents on each of the shares held by that member ...... but no more than that Where liability is limited by guarantee, in the event of an insolvent liquidation, a member that has an interest in a company limited by guarantee can be required by the liquidator to pay cash into the company but the limit of that required payment is "the amount (if any) that the member has guaranteed to pay" Typically, this guaranteed amount would be just $1 Better?

All based on past exam questions! Get used to it!