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A. Limited Liability Company whether PUBLIC or PRIVATE.
a. Limited by shares
b. Limited by guarantee
B. Unlimited Liability Company.
C. Association of persons.
A. Limited liability company
A limited liability company can be a PUBLIC or PRIVATE company and the word limited forms a part of their name. A limited liability company can either be;
i. Limited by shares, or
ii. Limited by guarantee.
a. Limited by shares
When liabilities of members of a company are limited by its memorandum upto the par value of the shares held by them, it is called limited by shares.
b. Limited by guarantee
When the liability of members of a company is limited by its memorandum upto the amount undertaken by them to contribute in case of winding up of company, it is called limited by guarantee.
Ø A company limited by guarantee may or may not have share capital.
Ø For a company limited by guarantee not having share capital, (no person shall have any right to the divisible profits of the company)
Ø For a company limited by guarantee not having share capital, any provision in its article, memorandum, or any other resolution, to divide the undertaking of the company into shares or interest shall be treated as provision for share capital.
B. Unlimited liability company
An unlimited liability company does not limit the liability of its members by its memorandum.
· It may or may not have share capital.
C. Association not for profit
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