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What Is a Share?

The liability...

Question

The liability of the members in a Joint Stock Company is __________.

A

restricted

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B

limited

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C

unlimited

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D

constant

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Solution

The correct option is A limited
The liability of the members in a joint stock company is limited while company itself has unlimited liability since it has its existence in the eyes of law and is considered as an artificial person.

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Q. The liability of members of a Joint Stock Company is unlimited.

Q. Fill in the blanks:
(a) A company is legally _______ from its members.
(b) Liability of every member in a company is _________.
(c) Registration of a company is _________.
(d) A company is managed by a _______.
(e) In a private company, there must be at least ________ members.
(f) A company has _______ succession.

Q. The liability of shareholders in a Joint Stock Company is __________.

Q. State whether the following statements are True or False:
(a) A joint stock company is separate legal entity.
(b) A company survives even if all its members die.
(c) A joint stock company is a voluntary association of persons.
(d) A joint stock company is less stable than a partnership.
(e) Registration of a joint stock company is optional.
(f) There can be no conflict of interest in a joint stock company.
(g) A company is an artificial legal person.

Q. Which of the following statement is true and which is false?
P. A company being a body corporate can sue but cannot be sued in its own name.
Q. Members or shareholders are agents of a company. R. Members of a company cannot contract with company.
R. A partner's liability is always limited where as that of shareholder may be unlimited either by shares or a guarantee.

Select the correct the answer from the options given below-

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