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“Members of a Limited Company may nevertheless have unlimited liability.” Comment.

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 asked

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

The change can be made, after the passage of a special Resolution in the Annual General Assembly and the prior approval of the Central Government or the Company Law Council is required.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

A company, being a separate legal person is unaffected by death or departure of any member and it remains the same entity, despite total change in the membership. Professor L.C.B. Gower rightly mentions, “Members may come and go, but the company can go on forever.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

Hello, > **`*The liability of a member depends on the nature of the company*.`** **If the company is registered with unlimited liability,** every member is liable in full for all the debts of the company contracted during the period of his membership. **Where the company is limited by guarantee**, each member will be bound to contribute in the event of winding up a sum specified in the liability clause of the memorandum of association. **In case of company limited by shares**, each member is bound to contribute the full nominal value of shares and his liability ends there. If before the full nominal value of the shares is paid, the company goes into liquidation, the member becomes liable as contributory to pay the balance when called upon to pay, by the liquidator of the company. Thanks & Regards

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

This Income Computation and Disclosure Standard is applicable for computation of income chargeable under the head “Profits and gains of business or profession” or “Income from other sources” and not for the purpose of maintenance of books of accounts.ICDS is only for computation of income and not for maintainance of books of accounts. Thus Accounting of transaction has to bedone in accordance with commercial accounting practices and relevant governing statute for maintainance of books of accounts (eg. Companies Act, 2013 if company).

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