Question

The liability of shareholders of a public limited company is limited to the ___________ .

• A. extent of their private assets
• B. paid up value of shares
• C. nominal value of shares
• D. amounts called up

Answer 1

Answer: (C)

In case of a public limited company the liability of the shareholder is to pay up to the nominal value of shares. The company can at any time ask the shareholders to pay the unpaid calls on the shares. In case of loss, shareholders are not liable to pay more than the nominal value of shares.Hence, its said that the liability of the shareholders is limited to the unpaid calls or nominal value of the shares.