What is an unlimited company?

An unlimited company is a company having no limit on the liability of its members. The members of such a company are liable to the full extent of their fortunes to meet the obligations of the company by contributing to its assets in the event of its being wound up. Thus, such a company does not carry the benefit of limited liability which is available to the members of all the other types of company. So far as the risk of the members is concerned, there is no difference between a partnership firm and an unlimited company.

Eighth Type of NBFC Formulated by RBI

RBI has issued  CIRCULAR DNBS.CC.PD.NO. 250/03.10.01/2011-12, DATED 2-12-2011 by which  it is stated that a new category of Non Banking Financial Company for Micro Finance sector is created.Thus, a separate category of NBFCs viz; Non Banking Financial Company-Micro Finance Institution (NBFC-MFI) is created. Now the 8 types of NBFC are i. Asset Finance Company (AFC)...

Supreme Court : State Gets Priority on Debt Over Banks & Other Lenders

A three judge bench of hon’ble Supreme Court in Central Bank of India Vs State of Kerala & Ors [(2009) INSC 435; (2009) 4 SCC 94: Decided on 27.02.2009 has  settled the controversy   about the priority of claim on assets of debtor by the State and other secured creditors like Banks and others. The Supreme...

Class Action Suit Under New Companies Bill 2011 Possible !

Well shareholders of a company are going to have a collective tool against misdeed of the companies , it seems under new Companies Bill 2011. It is reported vide PIB release that  the Minister of State in the Ministry of Corporate Affairs today informed the Rajya Sabha that the Companies Bill 2011 is under finalization...

1,55,939 Defunct Companies Identified by MCA

The Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today[4th August 2011 ] informed the Lok Sabha that whether Government has enumerated or identified such registered companies which are inactive, dormant and have been in such mode for at least ten years.                           Replying to a written question the minister said...