[amp_mcq option1=”Public Companies Limited by Shares” option2=”Private Companies Limited by Shares” option3=”Companies Limited by Guarantee” option4=”Unlimited Companies” correct=”option3″]
The correct answer is: C. Companies Limited by Guarantee
A company limited by guarantee is a type of company that is not required to have a share capital. Instead, the members of the company agree to contribute a certain amount of money to the company if it is wound up. This type of company is often used by charities and other non-profit organizations.
Companies limited by guarantee are not required to frame their own Articles of Association. Instead, they can adopt the model Articles of Association that are provided by the Companies Act 2006. The model Articles of Association set out the basic rules and regulations that apply to all companies limited by guarantee.
However, companies limited by guarantee can choose to adopt their own Articles of Association if they wish. This is often done if the company wants to have more flexibility in how it is run.
The other options are incorrect because:
- Public Companies Limited by Shares are required to have a share capital and to frame their own Articles of Association.
- Private Companies Limited by Shares are required to have a share capital, but they are not required to frame their own Articles of Association. They can adopt the model Articles of Association that are provided by the Companies Act 2006.
- Unlimited Companies are not required to have a share capital, but they are required to frame their own Articles of Association.