Can anyone plzz explain the liability clause of memorandum of association the company limited by guarantee part?

Anaya · 27 May 2024

It defines that liability of members shall be limited by moa to such amount as members may respectively undertaken to contribute to assets of company in event of winding up of company.. liability are limited upto the sum mentioned in moa such amount can not be called during life time of company except in case of winding up ..funds can be raised through donation or fees etc it can be form with or without share capital

Sumit · 27 May 2024

What is the liability of MoA? The liability clause provides the extent of liability of the company's shareholders. It protects the shareholders from being held personally liable for the company's loss. The liability clause describes whether the company is limited by shares or limited by guarantee.

Kulsum · 27 May 2024

The shareholders in the company limited by guarantee have liability only to the extent they agreed to the liability Clause of memorandum. The amount should be called up by the shareholders only at the time of winding up of the business and only to the extent to which shareholders guarantee to the liability clause of memorandum.