alleryStart learning →Home › Bihar Board Class 12 (Commerce) › Business Studies › Formation of a Company › In a company limited by shares, member liability…
In a company limited by shares, member liability is capped at what?
ANominal value of shares plus premium
BTotal assets of all directors
CAnnual turnover of the firm
DTwice the issued capital
Answer & Solution
Correct answer: A. Nominal value of shares plus premium
Liability extends only to the nominal value of the shares plus any premium paid on issue.
Related questions
The company offering its shares in an IPO is known as what?What fee do underwriters keep from the proceeds of an IPO called?A listed company has 2 million shares outstanding at Rs 50 each. What is its market capitaMoney paid for newly issued shares in a primary offering goes to whom?Who typically underwrites an IPO?What is the process of a private firm offering shares to the public for the first time calA prospectus commonly includes which details about a company?Which document describes a security to potential buyers?