English Company Law - Companies with a limited liability
The vast majority of companies are limited liability companies. There were around 4.2 million companies registered in the UK as of March 2019, with just 4,133 being limitless firms. If a company's members' liability is limited, the form and scope of the limitation will be determined by whether their responsibility is limited by guarantee or by shares: The members' liability in a limited-by-guarantee business is restricted to the amount mentioned in the statement of guarantee (Insolvency Act 1986, s 74(3)). When a corporation is limited by shares, the members' liability is normally restricted to the amount owed on their shares (Insolvency Act 1986, section 74(2) (d)). Members who have paid in full for their shares are generally not obligated to make any further contributions to the company.
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