Understanding Liability Clauses in Companies

The video tutorial discusses liability clauses in companies, focusing on different types of companies based on liability: limited by shares, limited by guarantee, and unlimited liability. It explains the extent of liability for members in each type, particularly during winding up. The tutorial also covers the process of altering liability clauses, emphasizing the need for a unanimous resolution in a general meeting.

What is the primary focus of the video?

• Marketing strategies for businesses

• Financial management in companies

• Human resource management

• Types of companies based on liability

In a company limited by shares, to what extent is a member's liability limited?

• To the amount of unpaid share capital

• To the total assets of the company

• To the company's total debt

• To the amount of guarantee given

What does the liability clause define?

• The liability of the members of the company

• The company's profit-sharing ratio

• The company's marketing strategy

• The company's operational procedures

What is the liability of directors in a company?

• Directors do not have liability

• Directors have unlimited liability

• Directors have limited liability

• Directors' liability is equal to members' liability

If a person has 1000 shares with a face value of 10 rupees each and has paid 7 rupees per share, what is their liability at the time of winding up?

• 7000 rupees

• 3000 rupees

• 0 rupees

• 10000 rupees

In the example provided, how much has the person paid per share?

• 7 rupees

• 10 rupees

• 3 rupees

• 0 rupees

What is the liability of members in a company limited by guarantee?

• Unlimited

• Limited to the amount of guarantee given

• Limited to the unpaid share capital

• Limited to the company's total debt

What happens if a company limited by guarantee winds up?

• Members pay up to the amount of their guarantee

• Members pay the unpaid share capital

• Members pay the total debt of the company

• Members pay nothing

What is required for a company to alter its liability clause?

• A unanimous resolution in a general meeting

• Approval from the board of directors

• A majority vote in a general meeting

• Approval from the company's creditors

What type of meeting is required to pass a unanimous resolution for altering the liability clause?

• Annual general meeting

• Creditors meeting

• General meeting

• Board meeting