If I invest in equity shares of a company limited by shares, and there is no unpaid amount left, then - Business Studies - Important Videos

Question

If I invest in equity shares of a company limited by shares, and
there is no unpaid amount left, then am I liable to pay anything if
the company defaults?

Sumi Jain · Accepted Answer

Dear Student,

According to the Indian Companies Act 2013, a company limited by
shares is a company that has the liability of the members limited
to the unpaid amount of shares help with them The company can enact
this liability while the company is in existence or as it is
ending
Limited by shares refers to the liability of the shareholders to
the creditors of the business for the money that was invested
originally
If the liability of the company members is limited by the amount
not paid on shares they hold, this is referred to as a company
limited by shares The shareholder has to meet the debts of the
company only to the extent that is unpaid on his shares and no
separate property can be used to meet the debt

So, according to the above explanation if there is no unpaid amount
left then you will not be liable for any default And if the amount
of creditor is still unpaid, then in that case the liability will
arise up to the amount of shares held by you In that company

Regards,

If I invest in equity shares of a company limited by shares, and there is no unpaid amount left, then am I liable to pay anything if the company defaults?