CAF-4 · Chapter 16 · Question 3 of 10
In the case of a company limited by guarantee, what do the members explicitly undertake in the memorandum of association?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) To contribute a specified amount to the assets of the company in the event of it being wound up.
Explanation
The memorandum of association of a company limited by guarantee specifies the amount that the members respectively undertake to contribute to the assets of the company if it is wound up.
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