Q20
The liability of shareholders of a public company is limited to the _________.
A.
nominal value of shares
B.
extent of their private assets
C.
paid up value of shares
AnswerD.
accounts called up
Answer: Option C
Solution
Answer: Option C
Solution:
The liability of shareholders of a public company is limited to the paid up value of shares. "Limited by shares" means that the liability of the shareholders to creditors of the company is limited to the capital originally invested, i.e. the paid up value of the shares and any premium paid in return for the issue of the shares by the company.