Under Section 4 (2) (c) of the Companies Act states that ‘a company not having the liability of members limited in any way is termed as an unlimited company. The disadvantage of an unlimited company is that its members will be personally liable for the company’s debts. It is unlikely that promoters will wish to form an unlimited liability company if the company is intended to trade.
sharon kalunda answered the question on April 15, 2019 at 05:29
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The principle of corporate legal personality is an important and fundamental aspect of company law.
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