Companies where the liability of the shareholders of a company is LIMITED to the EXTENT of the unpaid amount on the shares held by them the company is known as a company limited by shares. In n companies, whatever may be the liabilities of a company, shareholders are not bound to pay anything more than the face VALUE of the shares held by them. Thus, the liability of each of the shareholders of such a company is always limited to the extent of the amount unpaid on his shares. A company limited by shares can be a public company or PRIVATE company.

Companies where the liability of the shareholders of a company is limited to the extent of the unpaid amount on the shares held by them the company is known as a company limited by shares. In n companies, whatever may be the liabilities of a company, shareholders are not bound to pay anything more than the face value of the shares held by them. Thus, the liability of each of the shareholders of such a company is always limited to the extent of the amount unpaid on his shares. A company limited by shares can be a public company or private company.