5/8/2011 Liabilities of members Liability of members may be limited,by: -shares, guarantee,or not at all. Different types of companies can be formed under s 4(2)depending on the type of member liability. Nb:for limited liability companies,the liability of the company itself is still unlimited. Examples of different manifestations Large public companies:division between ownership and management(but cf HK family owned companies). Small private companies:shareholders and directors often the same persons. 115/8/2011 11 Liabilities of members • Liability of members may be limited, by: - shares, - guarantee, or - not at all. • Different types of companies can be formed under s 4(2) depending on the type of member liability. • Nb: for limited liability companies, the liability of the company itself is still unlimited. 21 Examples of different manifestations • Large public companies: division between ownership and management (but cf HK family owned companies). • Small private companies: shareholders and directors often the same persons. 22