Liability refers to a person’s legal responsibility for a company’s obligations being limited to a certain level. The members’ liability for the company’s obligations is restricted under a limited liability corporation. In other words, the members of a company are only liable to the amount of shares they hold.
private limited company is growing more popular due to its reputation in attracting investors. This can be accomplished by issuing additional shares, borrowing money, or issuing bonds. Furthermore, while functioning as a private limited business, it is sometimes simpler to approach high-net-worth people for finance.
Perpetual succession’ is one of a company’s most essential characteristics. A Private Limited Company’s ‘Perpetual Succession’ refers to its continuous or unbroken existence until it is legitimately dissolved. A company is a separate entity which has its own identity and are different from its members. Therefore it is unaffected by their deaths or other departures, and it continues to exist regardless of membership changes.
legal entity Separate
On incorporation, a private limited company becomes distinct from its shareholders and directors in terms of legal status. Shareholders are the only ones who may claim the money directly from the company’s obligations, not those committed by its owners on behalf of the company. This implies the company may enter into contracts with other companies and persons and is responsible for its obligations and liability
The management personnel, including directors and managers of private limited businesses, have absolute authority over the company’s management. Shareholders can also control the corporation through an incorporated board of directors and appointing committees.