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What Is a Share?

In case of a ...

Question

In case of a company limited by shares, a shareholder has paid full on his shares, his liability will be.

A

As decided by directors

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B

An equal amount to already paid up value of share

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C

Nil

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D

None of these

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Solution

The correct option is B Nil
In a company limited by shares, the liability of the shareholders for company debts is limited to the capital originally invested in the business i.e. the nominal value of the shares they own

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