alleryIn a company limited by guarantee, the members' liability to contribute the guaranteed amount arises:
AOnly on the winding up of the company
BNever
COn declaration of dividend
DAt any time during the company's life
Answer & Solution
Correct answer: A. Only on the winding up of the company
In a guarantee company members may be called upon to contribute the guaranteed sum only on winding up, unlike a share company where calls can be made any time.
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