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COMPANY ACCOUNTING SESSION 14
1.3 LIMITED LIABILITY
Companies limited by shares. This is the form of a limited liability company, the proprietors' capital being
divided into a number of shares. Once these shares have been paid for, the holders have no further liability
in respect of the company's debts. Payables' claims must be made against the company and, if it becomes
insolvent and is liquidated, the shareholders do not have to make any contributions to meet the deficiency.
A company is always liable for all of its own debts without limit.
©LAWRENCE CAUCHI AIPFM, LMLCC, FIAB, MAAT, MIAAP. Page 5 of 19
