Limited by share意思

"Limited by share" is a term used in the context of company structure, specifically in reference to a "limited company" or "private limited company" in many countries, including the United Kingdom, India, and others. It refers to a company whose liability of its members is limited to the amount unpaid on the shares they hold.

In a limited by share company, the company's shareholders contribute to the capital of the company by purchasing shares. The liability of each shareholder is limited to the value of the shares they hold. This means that if the company is unable to pay its debts, the shareholders' personal assets cannot be used to pay those debts unless the shareholders have personally guaranteed the company's debts.

The term "limited by share" distinguishes this type of company from other forms of limited companies, such as "limited by guarantee," where the members' liability is limited to a pre-determined amount that they have agreed to contribute if the company is wound up.

In summary, "limited by share" means that the liability of the company's members (shareholders) is limited to the amount unpaid on the shares they own.