(i) Companies can be formed without limited liability. These, by virtue of s.3(4) CA 2006, are referred to as unlimited companies. Such companies are incorporated under the Companies Acts and receive all the benefi ts that fl ow from incorporation except limited liability. Consequently the shareholders in such unlimited companies remain liable to the full extent of their personal wealth for any unpaid debt of the company. It should be noted that, in line with the doctrine of separate personality, even in the case of unlimited companies any subsequent debt is owed to the company and not directly to the creditors of the company. The compensating benefi t enjoyed by such companies is that they do not have to submit their accounts and make them available for public inspection. |
